NEW DELHI: India’s automobile retail sector recorded its best-ever April performance, with total vehicle sales rising 12.94 per cent year-on-year to 26,11,317 units, according to data released by the Federation of Automobile Dealers Associations.
The data highlighted a robust start to FY 2026-27, with five out of six vehicle categories, along with the overall industry, registering all-time high April sales.
Among segments, two-wheelers led the market with sales of 19,16,258 units, growing 13.01 per cent YoY, while passenger vehicles recorded 4,07,355 units, up 12.21 per cent YoY. The commercial vehicle segment posted a growth of 15.02 per cent, with sales reaching 99,339 units.
The three-wheeler category reported sales of 1,06,908 units, rising 7.19 per cent, while tractor sales saw the highest growth of 23.22 per cent, with 75,109 units sold during the month. However, the construction equipment segment was the only category to witness a decline, falling 2.25 per cent YoY with sales of 6,348 units.
Reacting to the sales, FADA vice-president Sai Giridhar said, “The Indian auto retail industry has opened FY 2026-27 on an exceptionally strong note, retailing 26,11,317 units in April’26 — a 12.94 per cent YoY expansion that delivers the highest-ever April in our records…. The sequential MoM softness of -3.01 per cent reflects the customary post-March seasonal reset rather than any erosion in underlying demand”.
FADA noted that the strong growth across segments reflects sustained demand momentum that began in the second half of FY26 and has carried into the new financial year. It attributed this growth to multiple supportive factors, including improved affordability following GST changes, a supportive interest rate stance by the Reserve Bank of India, and strong rural cash flows after a healthy rabi harvest. An extended marriage season also contributed to higher demand for vehicles.
The broad-based growth across segments indicates continued strength in the auto retail market, with both urban and rural demand contributing to the overall performance. FADA said the record-breaking April performance highlights the resilience of the sector and suggests that the demand cycle remains strong at the start of FY27.
So, the data points to sustained consumer demand and favourable economic conditions supporting India’s automobile retail industry, even as one segment, construction equipment, showed a marginal decline.
The ongoing demand upcycle in India’s automobile industry is expected to continue for the next 2-3 quarters, with elevated growth likely to sustain through CY26 before gradually normalising in CY27, according to a report by Antique Stock Broking.
The report noted that the auto sector began FY27 on a strong footing, with broad-based volume growth across passenger vehicles (PVs), commercial vehicles (CVs), two-wheelers (2Ws), tractors, and electric vehicles (EVs). This growth has been supported by improving affordability following GST rationalisation, healthy rural sentiment, and ongoing premiumisation trends.
However, the report cautioned that escalating geopolitical tensions remain a key risk, particularly for export volumes and profitability in 1HFY27. Higher freight costs, commodity inflation, and potential supply-chain disruptions are expected to remain key concerns. It stated, “the ongoing demand upcycle to sustain over the next 2-3 quarters, with elevated industry growth likely through CY26”.
In the passenger vehicle segment, domestic wholesale volumes grew around 20 per cent year-on-year in April 2026. Tata Motors and Maruti Suzuki led the growth with 31 per cent and 32 per cent increases, respectively. Mahindra & Mahindra and Hyundai Motor India reported relatively moderate growth of 8 per cent and 17 per cent.
As per the report, Maruti’s performance was driven by strong demand across utility vehicles, compact cars, and mini segments. Toyota Kirloskar Motor also showed strong performance with 21 per cent growth, while JSW MG Motor India and Kia India posted modest growth of 4 per cent and 3 per cent, respectively.
In the commercial vehicle segment, domestic volumes (excluding Ashok Leyland) grew about 16 per cent year-on-year, supported by infrastructure-led demand and steady freight activity. Tata Motors outperformed with 28 per cent growth, driven by strong demand in small commercial vehicle cargo and pickup segments, which grew around 40 per cent.
VE Commercial Vehicles and Mahindra & Mahindra’s light commercial vehicle business reported steady growth of 9 per cent and 7 per cent, respectively. VE Commercial Vehicles is a joint venture between Volvo Group and Eicher Motors Limited.
In two-wheelers, volumes (excluding Bajaj Auto) rose around 30 per cent year-on-year, led by strong growth in Hero MotoCorp at 85 per cent and Royal Enfield at 37 per cent. TVS Motor Company reported 8 per cent growth, supported by 36 per cent growth in EV volumes, although motorcycle volumes declined 9 per cent due to supply-chain constraints. Export volumes grew 19 per cent, though performance varied across companies.
Tractor sales also remained strong, with domestic volumes growing about 23 per cent, supported by favourable farm sentiment, good reservoir levels, and government support. Mahindra & Mahindra, Escorts, and VST Tillers reported growth of 21 per cent, 28 per cent, and 17 per cent, respectively.
In the three-wheeler segment, Mahindra & Mahindra and TVS reported strong growth of 81 per cent and 61 per cent, respectively. Electric vehicle adoption continued to gain momentum. The electric passenger vehicle segment grew 74 per cent year-on-year, with Tata Motors, Mahindra & Mahindra, and Maruti Suzuki holding market shares of 37 per cent, 23 per cent, and 5 per cent, respectively. (ANI)
