Auto Retail Sales Surge Nearly 13% to Record High in April, FY27 Kicks Off Strong

India’s automobile retail sector has started FY27 on a high note, posting its best-ever April performance with total sales of 26,11,317 units — a year-on-year growth of 12.94 per cent, according to data released in New Delhi by the Federation of Automobile Dealers Associations (FADA).

The growth was broad-based across segments, with two-wheelers leading the charge. Retail sales in this category touched 19,16,258 units, marking the highest April performance ever. Demand remained strong in both urban and rural markets, with urban areas growing 14.07 per cent and rural markets expanding by 12.30 per cent year-on-year.

Across vehicle categories, most segments recorded robust gains. Two-wheelers grew by 13.01 per cent, three-wheelers by 7.19 per cent, passenger vehicles by 12.21 per cent, commercial vehicles by 15.02 per cent, and tractors saw a sharp rise of 23.22 per cent. Construction equipment was the only segment to register a decline, slipping by 2.25 per cent.

FADA Vice President Sai Giridhar noted that five out of six vehicle categories achieved all-time April records, highlighting the continuation of strong demand momentum seen in the latter half of FY26.

Commercial vehicle sales stood at 99,339 units during the month. Interestingly, rural demand in this segment outpaced urban markets significantly, growing 20.25 per cent compared to 10.22 per cent in urban areas. Within sub-segments, medium commercial vehicles (MCVs) led with a 27.07 per cent increase, followed by light commercial vehicles (LCVs) at 17.76 per cent and heavy commercial vehicles (HCVs) at 8.25 per cent.

Looking ahead, dealer sentiment remains cautiously optimistic. Around 50.90 per cent of dealers expect growth in the May–July period, slightly higher than earlier estimates. While seasonal factors such as the post-wedding slowdown and pre-festive lull may moderate momentum, the overall demand outlook remains stable.

Notably, 36.46 per cent of dealers have revised their FY27 expectations upward, while 46.21 per cent have maintained their projections. This reflects sustained confidence in India’s consumption-driven growth story.

FADA indicated that while growth may normalise in the coming months after a strong Q4 FY26, the underlying demand fundamentals remain intact, pointing to a steady and resilient auto retail market trajectory.

With inputs from IANS