Domestic passenger vehicle dispatches to dealers rose by 16% year-on-year to 4,42,460 units in March, driven by increased demand and inventory build-up. This growth was reported by the Society of Indian Automobile Manufacturers (SIAM). In comparison, passenger vehicle wholesales in March last year were at 3,81,358 units.
Two-wheeler dispatches also saw a significant increase, rising by 19.3% to 19,76,128 units last month from 16,56,939 units a year ago. The industry body highlighted this growth in a statement. Similarly, three-wheeler dispatches climbed by 21.4% year-on-year to 76,273 units in March, up from 62,813 units in March 2025.
Moreover, in February, domestic passenger vehicle dispatches from companies to dealers had grown by 10.6% year-on-year to 4,17,705 units. This positive trend reflects the continued optimistic market sentiment, as per data from the Society of Indian Automobile Manufacturers.
The outlook for the passenger vehicle segment remains positive overall, although growth is expected to slow down in the future. Forecasts suggest that the industry may witness wholesale volume growth of approximately 7–9% in FY26, supported by robust festive demand, recent GST rate reductions, and a consistent stream of new model launches. However, growth is anticipated to ease to 4–6% in FY27 due to a higher base and changing macroeconomic conditions.
The sector is undergoing structural changes, with utility vehicles accounting for nearly 67% of total passenger vehicle sales, indicating a trend towards premiumization. Additionally, the increasing adoption of alternative fuel options like CNG and electric vehicles is contributing to diversifying demand.
