The Indian auto retail industry commenced FY27 on a high note, selling a record 26,11,317 units in April, marking a 12.94% growth, as per data from the Federation of Automobile Dealers Associations (FADA). Two-wheeler sales notably surged to 19,16,258 units, achieving the best-ever April performance in this segment. The growth was broad-based, with urban markets expanding by 14.07% year-on-year and rural markets by 12.30%.
“With two-wheelers up by 13.01%, three-wheelers by 7.19%, passenger vehicles by 12.21%, commercial vehicles by 15.02%, tractors by 23.22%, and construction equipment down by 2.25%, five out of six vehicle categories, including the overall industry, set new April records,” stated FADA Vice President Sai Giridhar. This indicates that the strong demand trend from the second half of FY26 has carried over into the new fiscal year.
In April, commercial vehicle sales reached 99,339 units, with rural markets exhibiting a remarkable 20.25% year-on-year growth compared to urban markets at 10.22%. The MCV sub-segment continued its impressive performance with a 27.07% year-on-year growth, while LCVs grew by 17.76% and HCVs by 8.25%, showcasing growth across sub-segments.
Looking ahead to the May-June-July period, dealer confidence remains stable, with around 50.90% of dealers anticipating growth, slightly higher than the previous survey’s 49.81% growth expectation for the April-June period. This indicates that dealers perceive sustained demand despite the usual seasonal slowdown post the marriage season and before the festive period, according to the FADA report.
Around 36.46% of dealers have raised their retail expectations for FY27, while 46.21% have maintained their outlook, signaling a strong belief in India’s medium-term consumption story. The industry’s outlook for the next three months remains cautiously optimistic, with growth momentum intact as the sector transitions from a robust Q4 FY26 to a more balanced mid-year phase.
