Indian automobile sales has delivered a record-breaking start to FY27, with passenger vehicles, two-wheelers, and three-wheelers posting robust double-digit growth in April 2026 despite persistent global uncertainties, commodity inflation concerns, and geopolitical disruptions in West Asia. Fresh data released by the Society of Indian Automobile Manufacturers (SIAM) shows India’s domestic auto market continuing its strong recovery momentum from the second half of FY26.

Key Highlights

• Passenger vehicle sales hit an all-time April high of 4.37 lakh units, rising 25.4% YoY.
• Two-wheeler sales surged 28.4%, signalling stronger rural and entry-level consumer demand.
• Three-wheeler dispatches jumped 32.8%, recording their highest-ever April sales.

Passenger Vehicles Clock Historic Monthly Peak

India’s passenger vehicle (PV) segment recorded its highest-ever April domestic sales at 4,37,312 units, compared to 3,48,847 units in April 2025, reflecting a sharp 25.4% year-on-year growth. Utility vehicles continued to dominate the category, with domestic sales rising 21.5% to 2.44 lakh units, underlining sustained consumer preference for SUVs and premium utility-driven mobility.

The surge reflects stronger urban consumption, easier financing access, and resilient replacement demand despite inflationary pressures.

SUV Demand Keeps Market Momentum Intact

India’s growing preference for larger personal mobility solutions continued to reshape the PV landscape. Leading automakers delivered strong performances:

• Maruti Suzuki retained market leadership with domestic sales rising to 1.87 lakh units
• Mahindra & Mahindra posted healthy utility vehicle growth
• Hyundai Motor India sustained strong wholesale traction

SUVs now account for nearly two-thirds of India’s passenger vehicle market, reinforcing structural consumer migration toward feature-rich utility vehicles.

Two-Wheelers Signal Rural Recovery

India’s two-wheeler segment delivered a strong rebound, with sales rising 28.4% to 18.73 lakh units, supported by improving rural liquidity, seasonal demand, and stronger entry-level affordability trends. Motorcycle sales crossed 11.38 lakh units, growing 30.6% YoY, while scooters rose 26.2%.

Among manufacturers:

• Hero MotoCorp emerged as a standout performer with 85% domestic sales growth.
• Honda Motorcycle & Scooter India posted strong gains.
• TVS Motor Company and Royal Enfield maintained healthy momentum.

The sharp increase points to improving confidence in India’s mass-market consumption economy.

Three-Wheelers and Exports Hit Multi-Year Highs

Three-wheeler sales touched a record 65,668 units, up 32.8% YoY, led by stronger urban mobility recovery and logistics demand.

Exports also surged 38% year-on-year to 6.28 lakh units, driven by robust overseas demand for Indian-manufactured two-wheelers and commercial mobility solutions, strengthening India’s position as a global automotive export hub.

Company Momentum Mirrors Export Recovery

The robust export recovery is also being exhibited by company performance in top auto groups. Hero MotoCorp has witnessed a healthy 4% increase in dispatch volume in April as demand in the rural segment picked up, the traction effect of premium motorcycle and increased business volume across the world. The company recently reported higher-than-forecasted quarterly earnings, largely driven by exports and selling premium motorcycles.

TVS Motor Company also saw good export client growth but indicated that near term pricing pressures are a result of commodity inflation due to tension in the Middle East and increased shipping costs. The firm is aiming to beat the overall industry growth with premiumisation and export growth despite margin pressure.

Meanwhile, Bajaj Auto enjoyed further support from international demand in Africa, Latin America and South Asia, furthering India's standing as the world leader in 2-wheelers exports. Two-wheeler exports jumped to 5.09 lakh units in April, reflecting the industry's emerging significance as a manufactory and supply base for the global market.

SIAM Flags Commodity Cost Risks

Commenting on April’s strong performance, Rajesh Menon, Director General, SIAM said, “The first month of FY27 posted high double-digit growth across passenger vehicles, three-wheelers and two-wheelers.”

He added, "While industry demand remains healthy, rising commodity prices linked to disruptions in West Asia remain a key concern for automakers, potentially impacting margins in the coming quarters."

A society representing leading manufacturers of passenger vehicles, two-wheelers, commercial vehicles and car components, the Society of Indian Automobile Manufacturers (SIAM) is the leading automobile industry organisation in India. It plays a critical role in policy advocacy, industry data publication, sustainability initiatives, and shaping India’s automotive manufacturing ecosystem.

Recent Reports

India’s automobile retail market began FY27 on a record note, with April 26 car sales hitting 26.11 lakh units, up 12.94% from the previous year, according to the Federation of Automobile Dealers Associations (FADA). Growth was widespread – across two-wheelers, passenger vehicles, commercial vehicles, three-wheelers and tractors – with rural markets showing far greater revival in consumption than urban markets, reflecting the recovery of consumption beyond metros, even in the face of commodity price and geopolitical uncertainty.

Also Read: India's EV Sales Stay Strong in April; Jan-Apr Volumes Jump Nearly 70%

India’s EV market continued to move with momentum in India in April 2026, with sales of EVs in the first quarter of this year increasing 69.5% year-on-year to 79,063 units, according to Vahan data. Though the days of sale were lower, April retail sales of 22,677 units show that consumers are buying products despite increased competition from the automakers, with Tata Motors and Mahindra & Mahindra setting the pace, confirming the medium- to long-term growth of EVs in India.