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

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

FADA said last month’s strong sales performance was supported by the GST rate cut, the RBI’s accommodative interest rate stance, healthy rural cash flows after a strong rabbinical cycle and the extended marriage season.

Passenger vehicle (PV) retail sales reached a record 4,07,355 units last month, up 12.21 percent from 3,63,028 units in April 2025.

Two-wheelers also registered a growth of 13 per cent, reaching 19,16,258 units in April this year, compared to 16,95,638 units in the same month last year, the best monthly figure ever.

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

Commercial vehicle sales also increased by 15 percent to 99,339 units last month compared to 86,364 units in April 2025.

“The Indian auto retail industry opened FY 26-27 on an extremely strong note, clocking retail sales of 26,11,317 units in April 2026, a year-on-year increase of 12.94 per cent, the highest ever April in our records,” said Sai Giridhar, Vice President, FADA.

Five of the six vehicle categories, along with the overall sector, recorded all-time April records, he said, adding: “This clearly underlines that the structural demand momentum that defined the second half of FY26 has carried over into the new fiscal year.”

Giridhar said the defining feature in the PV segment was the continuation of “Bharat’s superior performance over metros”, with rural sales growing by 20.40 per cent; this was nearly three times the 7.11 percent pace of Urban sales.

“This confirms the structural expansion of personal mobility into Tier-3 and rural India, driven by small car revival, sustainable SUV demand and a richer alternative powertrain product mix where CNG share remains stable at 22.62 per cent and EV share rises to 5.77 per cent,” he said.

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

FADA said this period for two-wheelers is expected to get a boost from sustainable rural sensitization, healthy agriculture cash flow ahead of Kharif sowing window and disciplined product promotions.

It was stated that while it is possible to remain determined about moving forward the marriage season and making reservations for passenger vehicles in May, the months of June and July may enter a more normal rhythm before the holiday.