New Delhi, April 14: Passenger vehicle sales in India rose by 16% year-on-year, reaching 442,460 units. This increase is attributed to improved demand and higher inventory levels at dealerships. The Society of Indian Automobile Manufacturers (SIAM) released this information on Tuesday.
In March of the previous year, wholesale sales of passenger vehicles stood at 381,358 units.
Additionally, the wholesale sales of two-wheelers saw a significant year-on-year increase of 19.3%, totaling 1,976,128 units, compared to 1,656,939 units during the same period last year.
Three-wheeler sales also experienced a notable rise, up by 21.4% year-on-year to 76,273 units, compared to 62,813 units in March 2026.
According to SIAM’s data, the number of domestic passenger vehicles dispatched from manufacturers to dealers in February increased by 10.6% compared to the previous year, reaching 417,705 units. This reflects a consistently positive market environment.
The overall outlook for the passenger vehicle segment remains optimistic, although a slight decline in the growth rate is anticipated in the near future.
Another report indicates that strong festive demand, recent reductions in GST rates, and the continuous launch of new models are expected to drive wholesale sales up by approximately 7-9% in the fiscal year 2026.
However, due to a high base and changing macroeconomic conditions, the growth rate is projected to decrease to 4-6% in fiscal year 2027.
The report also highlights ongoing structural changes in the sector, with utility vehicles accounting for about 67% of total passenger vehicle sales, reflecting a trend towards premium products. Furthermore, the adoption of alternative fuel options, such as CNG and electric vehicles, is diversifying demand.
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