India’s automobile industry started FY27 on a strong footing, with domestic passenger vehicle dispatches rising 25.4% year-on-year to a record 4,37,312 units in April 2026, driven by sustained demand for utility vehicles and passenger cars.

According to data released by the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle wholesales stood at 3,48,847 units in April 2025. The industry also reported a 26% rise in overall automobile production across passenger vehicles, two-wheelers, three-wheelers and quadricycles at 29.22 lakh units during the month.

The strong wholesale momentum comes close on the heels of robust retail demand, with Passenger Vehicle (PV) retail sales rising 12.21% year-on-year to a record 4,07,355 units in April 2026, according to data released earlier by the Federation of Automobile Dealers Associations (FADA). Rural markets continued to outpace urban centres, with rural PV sales jumping 20.4% against 7.11% growth in urban regions.

Utility vehicles continue to anchor PV demand

Utility vehicles remained the growth engine of the passenger vehicle market, with domestic dispatches climbing 21.5% year-on-year to 2,44,280 units in April. Passenger car sales rose at a faster pace of 32.7% to 1,20,945 units, while van sales increased 14.4% to 13,087 units.

SIAM Director General Rajesh Menon said the industry had sustained the momentum witnessed in the second half of FY26 into the new financial year.

“Passenger vehicles recorded their highest-ever sales of 4.37 lakh units in April 2026, while three-wheelers also posted their highest-ever sales of 0.66 lakh units,” Menon said. He added that demand trends remained healthy despite concerns over elevated commodity prices due to disruptions in West Asia.

The industry body noted that detailed domestic sales data for BMW, Mercedes-Benz, Jaguar Land Rover and Volvo Auto were unavailable, while Tata Motors’ figures were included only in the overall passenger vehicle tally.

Two-wheelers, three-wheelers post robust growth

The two-wheeler segment also posted strong growth, with domestic sales rising 28.4% year-on-year to 18,72,691 units in April, compared with 14,58,784 units in the year-ago period.

Motorcycle dispatches surged 30.6% to 11,38,452 units, while scooter sales rose 26.2% to 6,91,993 units. Moped sales increased 9% to 42,246 units during the month.

Three-wheeler sales grew 32.8% year-on-year to 65,668 units, led by a 45.1% increase in goods carrier sales and a 31.1% rise in passenger carrier volumes. E-cart sales jumped 55%, although e-rickshaw sales declined 12.3% from a year earlier.

Exports also remained buoyant, with overall vehicle exports rising 38% year-on-year to 6.28 lakh units in April 2026.