Daijiworld Media Network – Mumbai

Mumbai, May 5: India’s automobile retail market registered its strongest-ever April performance, with total vehicle registrations rising 12.94 per cent year-on-year to 26,11,317 units, according to data released by the Federation of Automobile Dealers Associations (FADA).

Five of the six tracked segments—two-wheelers, passenger vehicles (PV), commercial vehicles (CV), three-wheelers and tractors—recorded their highest-ever April volumes, signalling strong demand momentum at the start of FY27. The construction equipment segment was the only exception, declining 2.25 per cent.

Two-wheelers led the growth, with sales increasing 13.01 per cent to 19,16,258 units. Passenger vehicle retail sales rose 12.21 per cent to 4,07,355 units, while commercial vehicles grew 15.02 per cent to 99,339 units. Three-wheelers posted a 7.19 per cent rise to 1,06,908 units, and tractors emerged as the fastest-growing segment with a 23.22 per cent jump to 75,109 units.

The robust performance reflects sustained demand from the latter half of FY26, supported by improved affordability under GST 2.0, a favourable interest rate environment, healthy rural incomes following a strong rabi harvest, and seasonal demand driven by an extended wedding calendar.

“The Indian auto retail industry has opened FY27 on an exceptionally strong note, with April delivering the highest-ever volumes for the month,” said Sai Giridhar, Vice President at FADA.

Rural markets continued to outperform urban demand across segments. In the passenger vehicle category, rural sales grew 20.40 per cent compared to 7.11 per cent in urban areas. A similar trend was observed in commercial vehicles, where rural demand rose 20.25 per cent versus 10.22 per cent in cities.

Within the PV segment, demand was driven by a recovery in entry-level cars along with sustained interest in SUVs and alternative fuel vehicles. CNG-powered vehicles accounted for 22.62 per cent of PV sales, while electric vehicle penetration rose to 5.77 per cent. Inventory levels remained stable at around 28–30 days.

Two-wheeler demand remained broad-based, with urban sales rising 14.07 per cent and rural sales up 12.30 per cent. However, EV penetration in this segment moderated to 7.76 per cent after a higher base in March.

In the commercial vehicle segment, all sub-categories posted growth, led by medium commercial vehicles (MCVs), which surged 27.07 per cent. Light commercial vehicles (LCVs) grew 17.76 per cent, while heavy commercial vehicles (HCVs) rose 8.25 per cent, supported by ongoing infrastructure and freight activity.

On a month-on-month basis, overall retail sales declined 3.01 per cent compared to March, reflecting a typical seasonal correction following the financial year-end rather than a slowdown in demand.

Looking ahead, dealer sentiment remains positive. Over 55 per cent of dealers expect growth in May, while around 51 per cent foresee continued expansion during the May–July period, supported by festive demand, new financial-year schemes, and replacement demand in the CV segment.

However, FADA cautioned about potential risks, including an above-normal heatwave, fuel price volatility amid geopolitical tensions, and supply-side constraints in certain models.