March PV sales surge 16% to 4.5 lakh units; Maruti, Tata, M&M lead growth as cost pressures loom

India’s Passenger Vehicle (PV) industry closed March 2026 on a strong note, with wholesales rising 16.3% year-on-year (Y-o-Y) to around 450,000 units, as demand momentum outweighed concerns stemming from geopolitical tensions in West Asia.

The growth was driven by improved affordability following Goods and Services Tax (GST) rate cuts, a sustained shift towards SUVs and compact cars, and robust export demand, even as supply-side constraints and rising input costs persisted.

Market leader Maruti Suzuki India Ltd (MSIL) reported domestic PV wholesales of 166,219 units in March, up 10.3% Y-o-Y, while total sales rose 16.7% to 225,251 units.

“March capped off a strong year for us, with total sales crossing 2.2 lakh units and exports growing 42.7% to over 47,000 units, contributing more than a fifth to overall sales,” said Partho Banerjee, Senior Executive Officer, Marketing and Sales, MSIL.

He noted that GST cuts drove a 12% rise in small car sales to around 175,000 units in the second half, though production constraints limited further gains, tightening dealer inventory to nearly 12 days. Flagging risks, Banerjee said rising commodity prices may necessitate price hikes, adding that the PV industry could grow around 5% in FY27, with a one percentage point variation depending on geopolitical developments.

SUVs, EVs drive momentum across automakers

Among peers, Tata Motors Passenger Vehicles (TMPV) posted a sharp 28.2% Y-o-Y rise in March wholesales to 66,192 units, driven by SUVs and electric vehicles. EV sales jumped 77% to 9,494 units, underscoring continued traction.

“The industry saw a strong rebound in the second half, with PV sales reaching around 4.7 million units,” said Shailesh Chandra, MD & CEO, TMPV, adding that CNG volumes grew ~20% while EV volumes crossed 200,000 units amid rising consumer adoption.

Mahindra & Mahindra (M&M) reported a 25.4% increase in PV wholesales at 60,272 units, led by strong SUV demand. Hyundai Motor India posted a 6.3% rise at 55,064 units, reflecting stable traction.

“Continuing the momentum, we achieved our highest-ever quarterly domestic sales of 1,66,578 units in Q4,” said Tarun Garg, MD & CEO, Hyundai Motor India, adding that the company remains confident of sustaining growth with new launches despite geopolitical uncertainties.

Broad-based gains, emerging cost pressures

Toyota Kirloskar Motor (TKM) reported a 24% rise in March sales at 37,194 units. “Sustained demand across SUV, MPV and compact segments, along with new launches, supported our performance,” said Sabari Manohar, Executive Vice President, Sales-Service-Used Car Business.

Other carmakers also managed to post growth in its numbers. Kia India reported a 14.5% rise to 29,112 units, its best-ever March, while Renault India saw a 77% jump to 5,046 units. Honda Cars India Ltd (HCIL) posted domestic sales of 7,585 units and exports of 2,451 units. Skoda Auto India reported a 17% increase in quarterly sales at 20,028 units.

Despite the strong showing, challenges remain. Rising logistics costs are beginning to weigh on exports, even as companies maintain diversified overseas markets across nearly 100 countries.

FY26 closes at record High, outlook cautious

For the full year FY2025-26, industry analysts claim that the PV industry recorded its highest-ever volumes at around 4.7 million units, up 8.3% Y-o-Y, driven by a sharp second-half recovery supported by GST changes and festive demand. Maruti Suzuki posted record annual sales of 24.2 lakh units, while Tata Motors and Mahindra & Mahindra each crossed the 600,000-unit mark in domestic PV sales for the first time, underscoring broad-based growth across the sector.