Indian Automobile Industry Opens FY27 with Robust Double-Digit Growth Across Key Segments Amid Strong Consumer Demand

According to data released by the Society of Indian Automobile Manufacturers, domestic passenger vehicle dispatches to dealers rose 26 percent year-on-year in April to nearly 4.4 lakh units, compared to about 3.5 lakh units in the same month last year.

Sport utility vehicles remained the dominant force in the passenger vehicle segment. Utility vehicle dispatches increased 20 percent during the month to 2.4 lakh units, reflecting the continued preference among Indian consumers for higher-bodied vehicles.

The industry’s performance was supported by sustained momentum carried forward from the second half of Financial Year 2026, as noted by Rajesh Menon of the Society of Indian Automobile Manufacturers in comments to The Times of India’s Aabhas Sharma. He stated that passenger vehicles, two-wheelers, and three-wheelers all recorded healthy double-digit growth in the month under review.

The two-wheeler segment delivered particularly strong performance in April, with total dispatches rising 28 percent year-on-year to 18.7 lakh units. Within this category, motorcycle sales grew 30.6 percent to 11.3 lakh units, while scooter dispatches increased 26.2 percent to 6.9 lakh units.

Three-wheeler sales also maintained strong traction, registering a 32.8 percent year-on-year rise to 65,668 units during the month.

Overall, the industry’s April performance underscores sustained consumer demand across mobility segments, even amid external cost pressures, reinforcing the strong growth trajectory entering Financial Year 2027.