Domestic passenger vehicle dispatches from companies to dealers rose 25.4% year-on-year to 437,312 units in April this year, according to industry body Siam. This represents a significant increase from 348,847 units dispatched in April 2025, demonstrating robust demand in the passenger vehicle segment. Rajesh Menon, Director General of SIAM, noted that "the passenger vehicles recorded their highest-ever sales of 4.37 lakh units with a growth of 25.4 per cent, over April 2025." The strong performance indicates positive momentum in the automotive sector during the first month of the fiscal year, with utility vehicles showing a 21.5% growth, while passenger cars and vans saw increases of 32.7% and 14.4% respectively. The industry's double-digit growth in passenger vehicles, three-wheelers, and two-wheelers is a continuation of the momentum seen in the latter half of fiscal 2025-26.
The two-wheeler segment showed even stronger growth, with total two-wheeler sales rising 28.4% to 1,872,691 units last month compared to 1,458,784 units in April last year, as reported by Siam. According to FADA data, two-wheeler retails reached 19,16,258 units last month, marking the best-ever April for this category. The demand engine remained broad-based with urban markets growing 14.07% year-on-year and rural markets growing 12.30%, demonstrating strong performance across both segments. These figures underscore a resilient demand amid global economic challenges and turmoil in West Asia that has created high commodity prices.
The three-wheeler segment also contributed to the overall positive performance, with dispatches to dealers up 32.8% last month at 65,668 units compared to 49,441 units in the year-ago period, according to Siam. Three-wheelers also posted their highest ever sales of 0.66 lakh units, registering a growth of 32.8% compared to April 2025. This growth across multiple vehicle categories indicates healthy demand across India's automotive market segments during April, with the segment showing particularly strong momentum in the current fiscal year.
Despite concerns over high commodity prices emanating from disruptions in West Asia, the automotive industry continues to witness good demand, as noted by SIAM. The broader outlook for the passenger vehicle segment remains positive, though growth is expected to moderate going ahead. Total production of passenger vehicles, three wheelers, two wheelers and Quadricycle in April were 29,22,427 units, according to SIAM. The domestic auto retail industry opened FY27 on an exceptionally strong note, with retail sales of 26,11,317 units in April - a 12.94% growth, as reported by FADA. These figures underscore the industry's resilience and ability to maintain strong performance despite global economic headwinds.
