Auto industry posts record retail sales at 26,11,317 units in April, says FADA

Total automobile retail sales in India grew by 12.94 per cent with a record 26,11,317 units in April as compared to 23,12,221 units in the same month last year, making a bright start to the new fiscal, Federation of Automobile Dealers Associations said on Tuesday.

Sustained tailwinds from GST 2.0 affordability gains, RBI’s supportive rate stance, healthy rural cash flows post a strong rabi cycle and an extended marriage season helped the industry post a robust performance, Federation of Automobile Dealers Associations (FADA) said in a statement.

Passenger vehicles (PV) retail sales were at a record 4,07,355 units last month as compared to 3,63,028 units in April 2025, a growth of 12.21 per cent, it added.

Two-wheelers also clocked best-ever monthly numbers at 19,16,258 units in April this year as compared to 16,95,638 units in the same month a year ago, at a growth of 13.01 per cent, it added.

FADA further said three-wheeler sales stood at 1,06,908 units last month as compared to 99,741 units in April 2025, up 7.19 per cent.

Commercial vehicles also witnessed a growth of 15.02 per cent at a record 99,339 units last month as compared to 86,364 units in April 2025, it added.

“The Indian auto retail industry has opened FY 2026-27 on an exceptionally strong note, retailing 26,11,317 units in April 2026, a 12.94 per cent YoY expansion that delivers the highest-ever April in our records,” FADA Vice President Sai Giridhar said. Five of the six vehicle categories, along with the total industry, registered all-time April records, he said, adding,” This clearly underlines that the structural demand momentum which defined the second half of FY26 has carried into the new financial year.”

Giridhar said in the PV segment, the defining feature was the continued “outperformance of Bharat over the metros” as rural sales grew 20.40 per cent, nearly three times the Urban pace of 7.11 per cent.

“This confirms the structural broadening of personal mobility into Tier-3 and rural India, supported by a small-car revival, sustained SUV demand and a richer alternative-powertrain product mix where CNG share held firm at 22.62 per cent and EV share improved further to 5.77 per cent,” he said.

PV inventory levels have moved up modestly to a range of 28-30 days, marginally above the March 2026 level of 28 days but well within the healthy band that we view as constructive, he said, while urging OEMs “to maintain disciplined dispatches in the coming weeks so that channel inventory stays anchored close to FADA’s recommended 21-day benchmark”.

Sharing outlook for the next three months, FADA said dealer confidence remains broadly steady, with 50.90 per cent of dealers now expecting growth marginally firmer than the 49.81 per cent growth expectation recorded in the previous survey for the April-June 2026 window.

For two-wheelers, the period is expected to draw support from sustained rural sentiment, healthy agriculture cashflows ahead of the Kharif sowing window, and disciplined product introductions, FADA said.

In Passenger Vehicles, May is likely to remain firm on marriage-season carry-forward and bookings, while June and July may settle into a more normal rhythm before the festive run-up begins, it added.

“Overall, the next three months outlook hence remains measured but cautiously optimistic, the growth momentum is intact, but as the industry transitions from the strong Q4 FY26 close to a more calibrated mid-year phase, expectations are normalising rather than weakening,” it added.

FADA, however, noted that the India Meteorological Department’s forecast of an above-normal heatwave across several states, the geopolitical situation in West Asia and its potential pass-through to fuel prices, and selective supply constraints on running models remain factors to watch out for in the two-wheeler segment.

Along with the West Asia crisis impact, for the commercial vehicles segment, liquidity will be a factor to be monitored, it added.