India auto retail sales hit record high with 13% rise in April: FADA

India’s automobile retail sales rose nearly 13% year-on-year in April, clocking their best-ever performance for the month, dealers’ body Federation of Automobile Dealers Associations (FADA) said on Tuesday.

Overall vehicle retail sales stood at 26,11,317 units in April 2026, up 12.94% from a year ago, marking the highest-ever April tally, FADA said in a statement.

Five of the six vehicle categories — two-wheelers, passenger vehicles, commercial vehicles, three-wheelers and tractors — posted record April sales, while construction equipment was the only segment to see a marginal decline.

Sales of two-wheelers, which make up the bulk of India’s auto market, rose 13% to 19,16,258 units, while passenger vehicle sales increased 12.2% to 407,355 units.

Commercial vehicle sales grew 15.02% to 99,339 units, three-wheelers were up 7.19% to 1,06,908 units, and tractor sales surged 23.22% to 75,109 units.

Construction equipment sales, however, declined 2.25% to 6,348 units.

“The industry has opened the new fiscal on an exceptionally strong note, with broad-based growth across segments,” FADA Vice President Sai Giridhar said in a statement.

“The structural demand momentum which defined the second half of FY26 has carried into the new financial year,” he noted, adding that the slight month-on-month dip of about 3% was due to the usual post-March seasonal reset rather than any weakening in demand.

Rural markets continued to outpace urban regions across categories.

In the passenger vehicle segment, rural sales grew 20.40% compared with 7.11% growth in urban markets.

Similarly, commercial vehicle sales in rural areas rose 20.25%, compared to 10.22% growth in urban markets, driven by infrastructure activity, freight movement and replacement demand.

FADA said demand was aided by improved affordability after GST-related adjustments, a supportive interest rate environment, and an extended marriage season that typically boosts vehicle purchases.

The share of electric three-wheelers rose to over 60%, while passenger vehicle EV penetration edged up to about 5.8%. Two-wheeler EV share moderated from March levels following incentive-driven pre-buying in the previous month.

Looking ahead, dealers remained cautiously optimistic for May, with over half expecting sales growth, supported by the ongoing wedding season, new product schemes and replacement demand in commercial vehicles.

However, the association flagged risks from a likely heatwave, potential fuel price volatility linked to geopolitical tensions in West Asia, and supply constraints for certain models.

For the next three months, about 50.9% of dealers expect growth, indicating steady confidence in underlying demand, even as the market enters a seasonally softer phase before the festive season picks up.