The Indian automobile industry anticipates robust demand growth in 2026, driven by improved rural incomes and recent GST reforms that have enhanced affordability. Following a period of weak sales in early 2025, the sector saw significant recovery in late 2025, with substantial year-on-year increases in car and two-wheeler sales. Automakers are passing on tax benefits through price adjustments, lowering entry barriers for consumers. This positive momentum is expected to continue across all vehicle segments.