India’s automobile industry opened FY27 on a strong note, registering robust growth across key vehicle categories amid sustained consumer demand for sport utility vehicles (SUVs) and two-wheelers. The momentum came despite industry concerns over rising commodity costs linked to geopolitical tensions in West Asia.
According to data released by the Society of Indian Automobile Manufacturers (SIAM), domestic passenger vehicle dispatches to dealers increased 26% year-on-year to nearly 4.4 lakh units in April. In the corresponding month last year, the industry had shipped about 3.5 lakh units.
SUVs continued to remain the largest contributor to the passenger vehicle market. Utility vehicle dispatches rose 20% during the month to 2.4 lakh units, underlining the continued preference for higher-bodied vehicles among Indian buyers.
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Passenger car sales, meanwhile, recorded sharper growth, climbing 33% year-on-year to 1.2 lakh units. Van sales also expanded, increasing 14.4% to 13,087 units in April.
Rajesh Menon of SIAM told The Times of India's Aabhas Sharma that the automobile industry had entered the new financial year carrying forward the strong momentum witnessed in the second half of FY26. He noted that passenger vehicles, two-wheelers and three-wheelers all posted healthy double-digit growth during the month.
He also indicated that demand conditions remained resilient despite concerns over rising commodity prices caused by disruptions in West Asia.
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The two-wheeler segment posted particularly strong growth in April, with overall dispatches rising 28% year-on-year to 18.7 lakh units. Motorcycle sales increased 30.6% to 11.3 lakh units, while scooter dispatches grew 26.2% to 6.9 lakh units.
Three-wheeler sales also maintained a strong trajectory, rising 32.8% from a year earlier to 65,668 units during the month.
