April Sees Robust Record Automotive Retail Sales In India
- By MT Bureau
- May 05, 2026
The positive momentum for the Indian automotive industry continues to accelerate in the new fiscal year. In what comes as a record retail sales registration across categories, the total automotive sales in April 2026 reached a whopping 2.61 million units, up 12.94 percent, as compared to 2.31 million units last year.
The record retail sales were witnessed across two-wheelers, which saw retail registrations at 1.91 million units, up 13 percent YoY, three-wheelers at 106,908 units, up 7.19 percent YoY, passenger vehicles at 407,355 units, up 12.21 percent YoY, tractors at 75,109 units, up 23.22 percent YoY and commercial vehicles at 99,339 unit, up 15.02 percent YoY.
Barring construction equipment at 6,348 units, down 2.25 percent YoY, all categories were in the green.
Sai Giridhar, President, FADA, said: “This clearly underlines that the structural demand momentum which defined the second half of FY2026 has carried into the new financial year. The sequential MoM softness of -3.01 percent reflects the customary post-March seasonal reset rather than any erosion in underlying demand.”
He stated that the demand engine remained broad-based with Urban markets growing 14.07 percent YoY and Rural markets growing 12.30 percent YoY.
The industry body attributed this performance to improved rural liquidity following a healthy rabi season, the extended marriage-season tailwind that runs through May and June, and continued affordability gains carried over from the GST 2.0 framework. Furthermore, the performance could have further grown, if the industry did not witness supply constraints for selective models in certain commuter and premium variants.
In terms of electrification in the two-wheeler segment, it saw moderation at 7.76 percent, as compared to 9.79 percent last month.
Commenting on the commercial vehicle performance, Giridhar said, “From a market mix standpoint, Rural markets grew a striking 20.25 percent YoY versus Urban at 10.22 percent YoY, highlighting that logistics-led demand is no longer concentrated in metros. Dealers across regions reported sustained freight movement, infrastructure-linked goods activity, school-bus replacement demand, and steady single-owner operator confidence as the principal drivers. The MCV sub-segment continued its standout run at 27.07 percent YoY, while LCVs grew 17.76 percent and HCVs 8.25 percent — reflecting participatory growth across sub-segments. Some dealers, however, flagged elongated financing turnaround time, sporadic variant-level supply gaps and a degree of caution induced by external geopolitical developments as monitorables.”
Coming to the passenger vehicle segment, the segment has seen demand firing on all cylinders. Interestingly, Rural PV growth at 20.40 percent YoY, was nearly three times the Urban pace of 7.11 percent YoY.
“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 percent and EV share improved further to 5.77 percent. Dealers cited improved affordability post-GST 2.0, the Reserve Bank of India's supportive rate stance, which has translated into stronger EMI comfort, and a healthy marriage-season pipeline as the principal demand drivers. PV inventory levels have moved up modestly to a range of 28–30 days, marginally above March'26's around 28 days but well within the healthy band that we view as constructive. We continue to encourage PV OEMs to maintain disciplined dispatches in the coming weeks so that channel inventory stays anchored close to FADA's recommended 21-day benchmark, particularly as we move into the seasonally softer May-June window,” added Giridhar.
The near-term outlook for May 2026 is cautiously optimistic, with over 55 percent of dealers expecting continued growth. Momentum is expected to be maintained by the peak of the marriage season and residual buying from festivals like Akshaya Tritiya. However, monitorable factors include potential heatwaves, geopolitical tensions in West Asia that could impact fuel prices, and selective supply constraints. Over the next three months, dealer confidence remains steady as the industry transitions toward its mid-year phase.
Going forward, the industry body expects that demand for CVs, two-wheelers and passenger vehicles will continue to be positive. For CVs, he attributes the same to residual buying triggered by Akshaya Tritiya in select northern and western markets, the new financial-year OEM scheme cycle and sustained replacement demand in the CV segment.
The two-wheeler segment will continue to reap the benefits of improving rural cashflows, agri-cycle preparation purchases and continued post-GST 2.0 affordability in the rural market, while passenger vehicles are likely to benefit from healthy booking pipelines, refreshed product launches and improving small-car traction.
“That said, the India Meteorological Department's forecast of an above-normal heatwave across several states, the geopolitical situation in West Asia and its potential pass-through to fuel prices, selective supply constraints on running models remain factors to watch,” he concluded.
| AUTO RETAIL SALES IN INDIA | ||||||
| Category | Apr '26 | Apr '25 | Change (in units) | Change (in %) | Mar '26 | Change (in %) |
| YoY | YoY | MoM | ||||
| Two-wheeler | 1,916,258 | 1,695,638 | 220,620 | 13.01% | 1,951,006 | -1.78% |
| Three-wheeler | 106,908 | 99,741 | 7,167 | 7.19% | 109,777 | -2.61% |
| E-Rickshaw (P) | 28,154 | 39,504 | -11,350 | -28.73% | 28,946 | -2.74% |
| E-Rickshaw with Cart (G) | 7,742 | 7,447 | 295 | 3.96% | 7,425 | 4.27% |
| Three-wheeler (Goods) | 13,133 | 10,322 | 2,811 | 27.23% | 14,006 | -6.23% |
| Three-wheeler (Passenger) | 57,767 | 42,326 | 15,441 | 36.48% | 59,283 | -2.56% |
| Three-wheeler (Personal) | 112 | 142 | -30 | -21.13% | 117 | -4.27% |
| Passenger Vehicle | 407,355 | 363,028 | 44,327 | 12.21% | 440,144 | -7.45% |
| Tractor | 75,109 | 60,956 | 14,153 | 23.22% | 82,080 | -8.49% |
| Construction Equipment | 6,348 | 6,494 | -146 | -2.25% | 6,906 | -8.08% |
| Commercial Vehicle | 99,339 | 86,364 | 12,975 | 15.02% | 102,536 | -3.12% |
| LCV | 55,949 | 475,120 | ###### | -88.22% | 59,379 | -5.78% |
| MCV | 9,177 | 7,222 |
Rajnath Singh Flags Off Shaurya Vijay Yatra With Jawa-Yezdi Riders Carrying Sacred Soil To Kargil War Memorial
Defence Minister Rajnath Singh inaugurated the Shaurya Vijay Yatra 2026 at the National War Memorial in New Delhi, marking the commencement of nationwide observances for Kargil Vijay Diwas. The 13-day expedition, organised by Jawa Yezdi Motorcycles, features 28 riders traversing a 1,900-kilometre route to the Kargil War Memorial in Dras, Ladakh. The group comprises serving and retired defence personnel alongside their families, united under the rallying cry of ‘One Ride, One Nation, One Salute’ to honour the bravery and ultimate sacrifices of the 1999 Kargil War heroes. The motorcycle contingent is scheduled to pass through significant military landmarks including Chandimandir, Rezang La and the Leh War Memorials before its scheduled arrival on 26 July. A central element of the journey involves transporting an urn filled with sacred soil from the National War Memorial to Kargil, symbolising the enduring valour of India's warriors across generations. The riders will also pay personal tributes to Veer Naris, acknowledging the resilience of the war widows. Senior military leadership, including Chief of Defence Staff General N S Raja Subramani and Army Chief General Dhiraj Seth, joined the Defence Minister at the ceremonial start, alongside veterans and senior officials. The presence of the National Cadet Corps underscored the event's focus on inspiring youth to remember the nation's gallant soldiers and embrace the core principles of duty and selfless service. During his address, the Defence Minister commemorated the soldiers whose courage upheld the nation's honour, framing the Kargil victory as a testament to India's steadfast sovereignty. He specifically recalled the contributions of Param Vir Chakra recipients Captain Vikram Batra, Lieutenant Manoj Kumar Pandey and Subedar Majors Yogendra Singh Yadav and Sanjay Kumar. Initiated in 2021, this tribute ride has evolved into a cherished tradition, with each kilometre travelled serving as a poignant reminder that the nation's freedom is preserved by those who place their country above all else. Anupam Thareja, Co-Founder, Classic Legends, said, "Shaurya Vijay Yatra is our way of remembering the heroes of Kargil and their families. We started this tribute with the belief that remembering their sacrifices and being grateful is a shared responsibility. Through this journey, we remain committed to keeping their memories alive for future generations. Alongside the Indian Army, we are honoured to undertake this tribute and pay homage to our bravehearts."
Tata Motors' Kaushalya Programme Enrolls Over 23,000 Participants
Tata Motors, one of the leading automotive manufacturers, has shared an update on its Kaushalya Programme, an industry-led training initiative ahead of World Youth Skills Day. The programme has enrolled more than 23,000 participants and achieved a 100 percent placement rate for over 5,000 graduates, including more than 50 international placements. The initiative, launched in 2021, operates across manufacturing facilities in Pune, Jamshedpur, Lucknow, Pantnagar, Sanand and Dharwad. It provides a sponsored Diploma in Mechatronics through an earn-and-learn model. Participants receive training in areas such as automobile engineering, manufacturing technology, automation, IoT and Industry 4.0. Women account for 21 percent of the participants, with 25 percent of trainees from affirmative action categories. Sitaram Kandi, Chief Human Resources Officer, Tata Motors, said, “India's manufacturing competitiveness and mobility ambitions will be shaped by the quality of its workforce. Through Kaushalya, we are investing in the next generation of skilled professionals by creating opportunities that combine technical education, industry exposure and real-world experience. The programme is helping young people build meaningful careers while strengthening the talent pipeline required for an increasingly advanced and technology-driven automotive industry. The strong placement outcomes achieved by our trainees demonstrate the effectiveness of industry-academia collaboration in creating skills that are relevant, employable and future-ready. We remain committed to expanding the programme's reach and empowering more young people to participate in India's growth story.” Programme graduates have secured positions across the Tata ecosystem and at other companies, such as Tata Steel Downstream Products, Tata Advanced Systems, Zydus, JSW Greentech, Subros, Spinny and Wipro. About 50 graduates have also been placed at a Jaguar Land Rover facility in Nitra, Slovakia. Anita Kende Bethekar, a programme trainee currently placed with Jaguar Land Rover, said, “Coming from a remote tribal village in Maharashtra, a global career in the automotive industry once felt beyond reach. Tata Motors’ Kaushalya programme equipped me with the skills, exposure and confidence to pursue opportunities I had never imagined. Today, I am proud to be the first girl from my village and neighbouring region to hold a passport and build a career with Jaguar Land Rover in Slovakia. This achievement is not just mine; it is a source of pride for my family, my community and every young girl who dares to dream beyond her circumstances.” Soham Ravindra Manmode, a trainee placed with Tata Motors Customer Support, said, “Coming from a financially challenged family in a small town, building a career in the automotive industry once felt like a distant dream. Tata Motors’ Kaushalya Programme changed that by enabling me to learn, earn and gain real-world industry experience simultaneously. The skills, confidence and exposure I acquired through the programme helped me build a rewarding career with Tata Motors. Today, I take pride in supporting my family and contributing to India's automotive growth story.” Tata Motors intends for the programme to produce more than 5,000 industry-ready trainees each year to support the manufacturing and automotive sectors. Indian Automotive Sector Records $717 Million In Deals During Q2 2026
The Indian automotive sector recorded 20 deals worth USD 717 million in Q2 2026 according to the latest findings by Grant Thornton Bharat's Automotive Dealtracker. While transaction volumes reached their lowest level since Q2 2023, deal values saw a marginal decline of 4 percent quarter-on-quarter. Excluding public market activity, the sector saw 18 Mergers & Acquisitions (M&As) and Private Equity / Venture Capital (PE/VC) transactions valued at USD 479 million. M&A activity comprised five deals worth USD 138 million, with KPIT Technologies' USD 120 million acquisition of Cymotive Technologies representing the period's focus on software and cybersecurity. PE/VC activity included 13 deals worth USD 341 million, led by Rapido’s USD 240 million fundraise and JBM Ecolife Mobility’s USD 47 million investment. Saket Mehra, Partner and Auto & EV Industry Leader, Grant Thornton Bharat, said, "While deal activity slowed during the quarter, investment remained focused on businesses driving the future of mobility. We are seeing continued interest in EVs, mobility platforms and automotive technologies, with investors becoming more selective and backing companies that have demonstrated scale, differentiated capabilities and a clear growth path. As the sector evolves, technology-led investments are expected to continue shaping deal activity." The key findings from the report include: Mobility-as-a-Service accounted for USD 298 million of the total sector deal value. Electric vehicles represented 54 percent of PE transactions. Auto tech made up 87 percent of M&A value. The five largest PE deals represented 96 percent of the total PE value.
Vijaybhoomi University And NTTF Launch Manufacturing Education Pathway
Vijaybhoomi University and the Nettur Technical Training Foundation (NTTF) have introduced a training programme that allows employees at Tata Motors to earn university-recognised diplomas while working. The initiative, marked by a convocation at Tata Motors’ Pimpri-Chinchwad plant, aligns with the National Education Policy 2020 by integrating vocational skills with higher education frameworks. Under this partnership, NTTF Mechatronics programme graduates receive a Technical Diploma aligned with the National Higher Education Qualification Framework. Learners may subsequently progress to an Advanced Technical Diploma and a B.Tech in Mechatronics without leaving their jobs. Sanjay Padode, President, Vijaybhoomi University, said, "A university should recognise learning wherever it genuinely happens. Many of these learners have developed advanced technical capability on the shopfloor through structured training and disciplined practice. Our role is to connect that learning with nationally recognised higher education so that they can continue to grow academically without stepping away from their careers." Ravi Tennety, Managing Director, NTTF, said, "For more than 60-years, NTTF has prepared young people for careers in manufacturing and technology. This partnership gives our learners an opportunity to build on that foundation through formal higher education while continuing to contribute to industry. It creates new possibilities for lifelong learning." Prof Ravikesh Srivastava, Vice Chancellor, Vijaybhoomi University, said, "India has spoken for many years about integrating skills, industry and higher education. What we are seeing today is one working model of how that integration can happen in practice. It is built on academic quality, industry relevance and learner mobility." Sitaram Kandi, Chief Human Resources Officer, Tata Motors, said, "Manufacturing is changing rapidly, and so must the way we develop our people. Technical skills acquired on the shopfloor deserve opportunities for continuous academic progression, without requiring employees to step away from work. This collaboration between Tata Motors, NTTF and Vijaybhoomi University creates a pathway where learning, work and career advancement reinforce one another. It recognises that capability is built not only in classrooms but also through disciplined practice, problem-solving and real production environments. By enabling our employees and apprentices to earn nationally recognised university qualifications while continuing to contribute on the shopfloor, we are investing not only in individual growth but also in building a future-ready manufacturing workforce for India." Current IssueSubscribe For NewsletterEventsPopular news
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