Auto Retail Sales See Record 2.61 Million Units in April: FADA Data

Pune: Automobile retail sales in India rose 13 per cent year-on-year to a record 2.61 million units in April, the highest ever in the month, driven by strong rural demand and growth across most vehicle segments, Federation of Automobile Dealers Associations or FADA said on Tuesday.

The robust sales performance last month was backed by GST rate cut, RBI's supportive rate stance, healthy rural cash flows post a strong rabi cycle and an extended marriage season, FADA said.

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.

Two-wheelers also clocked 13 per cent growth, the 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.

Similarly, the three-wheeler sales jumped 7.19 per cent at 1,06,908 units last month as compared to 99,741 units in April 2025.

Sales of commercial vehicles also surged 15 per cent at a record 99,339 units last month as compared to 86,364 units in April 2025.

“The Indian auto retail industry has opened FY26-27 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 noted.

On the 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 cash flows 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.