new delhi/mumbai, July 16 -- India's auto industry has hit its first sales roadblock in over two years. According to the data from the Society of Indian Automobile Manufacturers (Siam), wholesale dispatches in the April-June quarter fell 5% year-on-year, marking the first quarterly decline since FY23. Automakers sold just over 6 million units-including cars, two-wheelers, three-wheelers, trucks and buses-to their distributors during the quarter. While certain segments have seen sporadic declines over recent quarters, this is the first time overall industry volumes have dipped after showing consistent growth since FY23. "Overall sentiments across categories have remained subdued so far, even as the industry continues to navigate supply-side challenges. With the upcoming festival season coupled with the benefits of Reserve Bank of India (RBI) repo rate cuts, we expect consumer sentiments to improve," said Shailesh Chandra, president, Siam. All the categories, barring three-wheelers, saw a year-on-year decline in the first quarter of FY26, suggesting weak demand trends in the market. Passenger vehicle sales declined 1.4% to 1.01 million, two-wheeler sales fell 6.2% to 4.67 million, and commercial vehicle sales declined by 0.6% to 223,215. Three-wheeler sales grew 0.1% to 165,211. Analysts suggest that the market is following the long-standing trend of premiumization, which is leading to value increase, but volumes continue to struggle. "The recent dip in total auto sales follows a strong year and is largely driven by short-term factors such as high interest rates and broader economic uncertainty," Nikhil Dhaka, vice president, Primus Partners, said. The premiumization trend is being driven by consumer preference for pricier and feature-rich vehicles, Dhaka said. "Entry-level and two-wheeler segments are still under pressure, but demand for higher-end models and electric vehicles (EVs) remains relatively steady," he added. Auto dealerships have also highlighted high inventory levels....