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Informist, Monday, Apr. 6, 2026

 

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--FADA: Mar total vehicle retail sales 2.69 mln units, up 25.3% on year
--FADA: Mar passenger vehicle retail sales 440,144 units, up 21.5% on yr
--FADA: Mar 2-wheeler retail sales 1.95 mln units, up 28.7% on year
--FADA: Mar CV retail sales 102,536 units, up 15.1% on year
--FADA: Mar 3-wheeler retail sales 109,777 units, up 10.5% on year
--FADA: Mar tractor retail sales 82,080 units, up 10.9% on year
--FADA: FY26 total vehicle retail sales 29.67 mln units, up 13.3% on year
--FADA: FY26 passenger vehicle retail sales 4.71 mln units, up 13% on year
--FADA: FY26 two-wheeler retail sales 21.42 mln units, up 13.4% on year
--FADA: FY26 CV retail sales 1.06 mln units, up 11.7% on year
--FADA: PV inventory at 28 days in March vs 52 days year ago
 

 

NEW DELHI – Automobile dealerships registered their best-ever March as retail sales in the final month of 2025-26 (Apr-Mar) grew 25.3% on year to 2.69 million units, the Federation of Automobile Dealers Association said on Monday. In what was a sign of strong momentum from the cut in goods and services tax rate, dealerships recorded a strong Oct-Mar after a lull in Apr-Sept as retail sales in FY26 grew 13% on year to a record high of 29.67 million units.

 

"More than the headline number, what stands out is the quality of this close: it was driven by genuine retail pull rather than channel push, backed by enquiry conversion, healthy walk-in trends, and sustained consumer engagement right through the month," FADA President C.S. Vigneshwar said in a press release. In March, dealerships sold 1.95 million two-wheelers, up 14% on month and 29% on year, while passenger vehicle sales grew 11% on month and 21% on year to 440,144 units, FADA said.

 

While two-wheeler sales saw a broad-based growth across urban and rural markets, passenger vehicles fared better in rural India than in urban areas, FADA said. "The channel was in a markedly healthier position than the same month last year — inventory at approximately 28 days compared to over 50 days a year ago, and aged stock well within manageable levels," Vigneshwar said. 

 

Retail sales of commercial vehicles grew 15% on year but only 1.70% on month to 102,536 units. Infrastructure-linked movement of goods and school bus demand drove the demand for medium-tonnage commercial vehicles, FADA said.  

 

Tractor sales in March grew 11% on year but fell 8% on month to 82,080 units. Retail sales of construction equipment grew nearly 3% on month but fell 16% on year to 6,906 units. Three-wheeler sales fell 6% on month but grew almost 11% on year to 109,777 units.

 

FY26 PERFORMANCE

Retail sales of all segments, barring that of construction equipment, registered a year-on-year growth in FY26. Two-wheeler retail sales grew 13% on year to 21.42 million units, reclaiming a sales figure last seen in pre-COVID months, FADA said. "... a recovery that had been long awaited and was finally unlocked by the combination of GST-led affordability, improved rural cash flows, and a broadening product portfolio that catered to both entry-level and aspirational segments," Vigneshwar said.

 

"The EV share in 2W surged to 9.79%, the highest monthly reading yet, suggesting that the electric transition in this segment is approaching a critical mass, particularly in urban and semi-urban markets where total cost of ownership is becoming the decisive factor," he said.

 

Retail sales of passenger vehicles grew 13% on year to 4.70 million units. This record high retail sales was driven by a new-model pipeline, steady urbanisation, and the sustained shift towards SUVs (sports utility vehicles) and alternative powertrains, FADA said.

Commercial vehicle sales grew almost 12% on year to 1.06 million units, a record high. Almost all segments, barring heavy commercial vehicles, registered a double-digit growth in FY26.

 

Dealerships sold 1.36 million three-wheelers in FY26, up nearly 12% on year. Retail sales of electric passenger rickshaws, which form around 35% of this segment, barely grew on year, while those of passenger rickshaws, which form almost half of this segment, grew nearly 18% on year.

 

Tractor sales in FY26 stood at 1.05 million units, up almost 19% on year while retail sales of construction equipment fell 12% on year to 71,227 units. 'Tractors were the year's standout performer, crossing 10 lakh retail units for the first time in history at 18.95% growth — a direct reflection of an excellent monsoon, strong rabi sowing, and improving farm economics," Vigneshwar said.

 

OUTLOOK

Automobile dealers in India have a broadly constructive outlook for sales in April as nearly 51% of dealers surveyed by FADA expect growth, while 40% expect a flat performance. "Seasonal factors will shape the month — April marks the start of a new financial year, which traditionally brings a brief reset as OEM schemes adjust, fresh inventory arrives, and the consumer recalibrates post year-end purchase urgency," FADA said.

 

Around 53% of dealers surveyed by FADA said they have had some form of supply or dispatch concern because of the ongoing war in West Asia while 17% reported a significant delay of three or more weeks. However, FADA did not detail the concerns faced by or expected to be faced by the dealers.

 

For the next three months, dealers have a "cautiously positive" outlook for retail sales. While almost 50% of dealers surveyed by FADA expect a growth in Apr-Jun, nearly 41% expect a flat performance. 

 

For FY27, around 75% of dealers surveyed by FADA expect growth. "This suggests that the dealer community views the current uncertainty as transitional rather than structural, and that the medium-term India demand story remains well-anchored," FADA said.

 

"The structural demand drivers — urbanisation, rising incomes, rural mobility expansion, and electrification — remain firmly in place. The near-term risk lies in the speed and severity with which the West Asia situation evolves and transmits to fuel prices, supply chains, and broader consumer sentiment," FADA said.  End

 

Reported by Anand JC

Edited by Vandana Hingorani

 

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