Society of Indian Automobile Manufacturers (SIAM) said the Indian automobile industry began FY27 on a strong footing, with passenger vehicles, three-wheelers and two-wheelers posting high double-digit growth in April 2026.
The industry body said the robust performance continued the momentum witnessed during the second half of FY26, driven by healthy consumer demand across segments despite concerns around rising commodity prices.
Passenger vehicles clock record sales
Passenger vehicle sales touched an all-time high of 4.37 lakh units in April 2026, registering a growth of 25.4% compared with the same month last year.
SIAM said the April performance marked the highest-ever monthly sales recorded by the passenger vehicle segment, reflecting sustained consumer appetite and improving market sentiment.
The strong growth comes amid continued demand for utility vehicles and premium models, while automakers have also benefited from improving supply conditions and steady financing availability.
Three-wheelers post strongest-ever month
The three-wheeler segment also achieved its highest-ever monthly sales during April 2026.
According to SIAM data, the segment recorded sales of 0.66 lakh units, reflecting a year-on-year growth of 32.8%.
Industry observers said improving last-mile mobility demand, revival in urban transportation activity and stronger fleet utilisation supported growth in the category.
The segment has also been witnessing increased adoption of alternative fuel and electric mobility solutions, contributing to higher volumes.
Two-wheelers maintain growth trajectory
India’s two-wheeler industry continued its growth momentum with sales of around 18.73 lakh units during April 2026.
The segment registered a growth of 28.4% compared with April 2025, aided by improving rural demand, better consumer sentiment and continued recovery in entry-level motorcycle and scooter sales.
Industry executives said rural markets have remained a key growth driver for two-wheeler manufacturers, supported by favourable agricultural activity and improved financing access.
Commodity price concerns persist
Despite the strong demand environment, the industry remains cautious about rising commodity costs linked to geopolitical disruptions in West Asia.
Automobile manufacturers are closely monitoring fluctuations in raw material prices and supply chain conditions, particularly amid continuing uncertainties in global energy markets.
However, SIAM said the industry continues to witness healthy demand trends across vehicle categories, providing confidence for sustained growth momentum in the coming months.