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Informist, Tuesday, May 5, 2026

 

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--FADA: Apr total vehicle retail sales 2.61 mln units
--FADA: Apr total vehicle retail sales 2.61 mln units, up 13% on year
--FADA: Apr passenger vehicle retail sales 407,355 units, up 12% on yr
--FADA: Apr 2-wheeler retail sales 1.92 mln units, up 13% on year
--FADA: Apr CV retail sales 99,339 units, up 15% on year
--FADA: Apr 3-wheeler retail sales 106,908 units, up 7% on year
--FADA: Apr tractor retail sales 75,109 units, up 23% on year
--FADA: Apr PV inventory levels moved to 28-30 days, above Mar levels
--FADA: Outlook for May cautiously optimistic

 

MUMBAI – Automobile retail sales held their momentum from the second half of 2025-26 (Apr-Mar) in the first month of FY27 as dealerships recorded their best-ever April, Federation of Automobile Dealers Associations said in a press release on Tuesday. Dealerships sold 2.61 million automobiles in April, up almost 13% on year. Demand got a boost from an extended wedding season and continued affordability gains from the new goods and services tax framework, FADA said.

 

"This clearly underlines that the structural demand momentum which defined the second half of FY'26 has carried into the new financial year," FADA said. However, retail sales in April dipped 3% on month. FADA termed this moderation as "customary post-March seasonal reset," rather than any erosion in underlying demand.

 

Dealerships sold 1.92 million two-wheelers in April, up 13% on year but down almost 2% on month. This segment forms nearly two-thirds of all automobiles sold in India. "The demand engine remained broad-based with urban markets growing 14.07% YoY and rural markets growing 12.30% YoY. Dealers attributed this performance to improved rural liquidity following a healthy rabi season..." FADA said.

 

However, supply constraints for select models in the commuter segments and for premium variants continued to persist. "The EV share in 2Ws moderated to 7.76% in April from the elevated 9.79% reading in March — the latter having been amplified by prebuying activity around the closing window of certain mass-segment EV incentives — yet remained well above the FY'26 average of 6.5%," FADA said.

 

The retail sales of passenger vehicles improved 12% on year but fell a shade over 7% on month to 407,355 units in April. Sales of passenger vehicles in rural areas grew 20% on year, much higher than the 7% growth in urban areas. "This confirms the structural broadening of personal mobility into Tier-3 and rural India, supported by a small-car revival, sustained SUV (sports utility vehicles) demand and a richer alternative-powertrain product mix where CNG (compressed natural gas) share held firm at 22.62% and EV (electric vehicle) share improved further to 5.77%," FADA said.

 

Inventory levels of passenger vehicles with dealerships increased a tad from March to 28-30 days in April. FADA called on the companies to maintain "disciplined despatches" in the coming weeks to the lobby-body's recommended level of 21-days as the industry moves to May-June, which is seasonally softer.

 

Commercial vehicles' retail sales grew 15% on year but fell 3% on month to 99,339 units in April. Retail sales of light and heavy commercial vehicles grew year-on-year but dipped month-on-month while those of medium commercial vehicles grew year-on-year and month-on-month. "Rural markets grew a striking 20.25% YoY versus Urban at 10.22% YoY, highlighting that logistics-led demand is no longer concentrated in metros. Dealers across regions reported sustained freight movement, infrastructure-linked goods activity, school-bus replacement demand, and steady single-owner operator confidence as the principal drivers," FADA said.

 

"Some dealers, however, flagged elongated financing turnaround time, sporadic variant-level supply gaps and a degree of caution induced by external geopolitical developments as monitorables," FADA added. 

 

Retail sales of tractors grew 23% on year but fell 8% on month to 75,109 units, while those of construction equipment fell 2% on year and 8% on month to 6,348 units in April, FADA said. 

 

OUTLOOK

The auto dealer body expects demand in May to be supported by the extended wedding season which peaks in May and June, residual buying triggered by Akshaya Tritiya in select northern and western markets, the new financial-year auto scheme cycle and sustained replacement demand in the commercial vehicle segment. Overall, auto dealers are "cautiously optimistic" when it comes to sales in May.

 

Around 51% of the dealers surveyed by FADA expect a growth in automobile retail sales in May-Jun. "The dealer community continues to view the underlying demand pulse as intact even as it factors in the customary seasonal lull that typically sets in between the conclusion of the marriage season and the onset of the festive build-up," FADA said.

 

The two-wheeler segment may gain from sustained rural sentiment and healthy agri cashflows, while the passenger vehicle segment is expected to see steady demand driven by the marriage-season carry-forward and bookings.  End

 

Reported by Anand JC

Edited by Akul Nishant Akhoury

 

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