India Auto Sales FY26 hit record 4.7M; Mahindra overtakes Tata as GST & EV boom drive demand

India’s auto market has delivered its strongest year ever, with domestic passenger vehicle sales hitting a record 4.7 million units in FY26, up 8.3% YoY. The surge came after a slow first half, boosted by GST price cuts from September, lower EMIs, festive demand and new launches. Maruti Suzuki led with strong March sales of over 166,000 units, while Mahindra sold 660,276 units for the full year to overtake Tata Motors (631,387) and push Hyundai to No. 4, marking a major structural shift in the market. EVs crossed 200,000 units, and CNG grew ~20%. Despite risks in West Asia and rising commodity costs, the industry has reset at a higher level. Watch the full breakdown of company performances and what’s next for India’s auto sector.