New Delhi, April 27: Wholesale sales of passenger vehicles in India increased by 16% year-on-year, reaching 440,000 units in March. This growth is attributed to strong domestic demand, as reported in a recent release.
According to ICRA’s report, wholesale sales of automobiles in India are expected to grow by 4-6% in the fiscal year 2027. This growth will be supported by GST reductions and the launch of new models.
The demand for new models and the positive impact of revised Goods and Services Tax (GST) rates contributed to a robust 21% year-on-year increase in retail sales in March.
Following changes in GST rates, wholesale sales saw a 0.2% decline in the first half of fiscal year 2026, but rebounded with a strong 17% increase in the second half. Retail sales also rose by 11%, reaching an all-time high of 4.6 million units.
The report cites data from the Federation of Automobile Dealers Associations (FADA), indicating that inventory levels fell to about 28 days by March 2026, down from 52-53 days at the end of March 2025 and 60 days in September 2025.
In fiscal year 2026, utility vehicles (UVs) accounted for 68% of total passenger vehicle sales. While UVs continue to dominate, there has been a slight increase in sales in the mini, compact, and super-compact segments following GST reductions.
The UV segment is expected to remain the primary driver of sales, although demand for passenger cars is also anticipated to rise.
Exports recorded a commendable 18% growth in fiscal year 2026, albeit at a slower pace. The report suggests that this growth indicates an increase in supply from Indian manufacturers.
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My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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