Maruti, Tata lead April PV sales surge; Hero, Bajaj drive two-wheeler growth: ACMIIL

India’s automobile industry kicked off FY27 with strong wholesale momentum across segments, as passenger vehicles, two-wheelers and three-wheelers posted healthy year-on-year growth in April 2026, supported by resilient consumer demand, export recovery and improving rural sentiment, according to a report by Asit C. Mehta Investment Intermediates Ltd (ACMIL)

The brokerage noted that personal mobility segments remained the key growth drivers during the month, with passenger vehicle dispatches of the top four automakers rising 24.5% year-on-year, significantly outpacing retail growth of 12.3% amid lower dealer inventory and sustained customer demand. Commercial vehicle growth, however, continued to moderate after the strong post-GST 2.0 cycle, while isolated supply-side disruptions impacted select manufacturers.

Maruti, Tata outperform in passenger vehicles

Maruti Suzuki emerged as the strongest performer in the PV segment, reporting a 33.3% year-on-year increase in total sales to 2.39 lakh units, significantly ahead of estimates. ACMIIL attributed the growth to incremental capacity addition of nearly 2.5 lakh units at its Gujarat facility and faster execution of a backlog of around 1.3 lakh small cars. Utility vehicle sales climbed 32%, while exports surged 43.5%.

Tata Motors’ passenger vehicle volumes rose 31.1% to 59,701 units, driven by continued traction in SUVs and electric vehicles. Hyundai Motor India posted 8% growth aided by model refreshes, while Mahindra & Mahindra’s PV growth moderated to 7.6%, underperforming broader industry trends.

Hero, Bajaj Lead two-wheeler momentum

The two-wheeler segment maintained strong wholesale traction, led by Hero MotoCorp, whose volumes surged 85.4% year-on-year to 5.66 lakh units due to a favourable base effect stemming from last year’s production shutdown.

Bajaj Auto continued its strong growth trajectory with volumes rising 38.4%, largely driven by exports, which touched a seven-year high. Royal Enfield volumes increased 30.7%, led by sustained demand for the Classic 350, Hunter 350 and Meteor 350.

TVS Motor, however, remained a relative laggard with 5.9% growth as production and supply-chain constraints impacted motorcycle dispatches. ACMIIL said shortages of raw materials, consumables and containers affected volumes during the month.

Rural demand supports tractors, three-wheelers

Three-wheelers remained among the fastest-growing categories, led by M&M’s 81% jump and Bajaj Auto’s 54.2% rise, supported by strong export demand and improving EV penetration.

In commercial vehicles, Tata Motors outperformed peers with 28% growth, aided by strong demand for small commercial vehicles and pick-ups. Ashok Leyland, M&M and VECV reported high single-digit growth amid weaker bus demand and export headwinds.

Tractor makers also posted healthy gains amid favourable farm sentiment and strong rabi output. Escorts Kubota recorded 24.4% growth, while M&M tractor volumes rose 20.9%.

ACMIIL said electric vehicle penetration continued to improve year-on-year, with electric passenger vehicle penetration rising to 4.8% in April 2026 from 3.1% a year earlier. However, the brokerage cautioned that higher fuel prices, geopolitical uncertainties and supply-chain bottlenecks remain key risks for the sector in the coming months.