The Federation of Automobile Dealers Associations (FADA) has said that there has been total retail sales of 26,11,317 units in April 2026 in all kinds of vehicles. This is an increase of 12.94 percent on year-on-year basis. This is also the highest ever performance for the month of April ever on records.
In five of the six kinds of vehicles there was their best-ever performance in the month of April. There was a growth of 13.01 percent to 19,16,258 units in two wheelers while passenger vehicles increased to 4,07,355 units by 12.21 percent. Commercial vehicles were up by 15.02 percent to 99,339 units while tractor sales were up by 23.22 percent. However, there was decline of 2.25 percent in construction equipment.
There has been a decrease of 3.01 percent in monthly retail sales. This decline has been termed as seasonal correction by FADA after March month ended on a high note.
Rural markets and government policies spur demand across segments:
Demand for passenger vehicles surged in rural markets by 20.40%, outperforming their urban counterparts, which registered a 7.11% increase. Demand for two-wheelers was evenly spread across urban and rural markets, with double-digit growth in both regions. The growth in demand is due to enhanced liquidity in rural markets, a good rabi harvest, and sustained demand from smaller towns.
The growth in two-wheeler demand stemmed from price reductions after GST cuts and the on-going wedding season. The uptake of electric two-wheelers declined to 7.76% from the level reached in March due to earlier incentive-driven pre-purchases.
In the commercial vehicles segment, rural demand was robust, growing more than 20%. The growth in demand for commercial vehicles was underpinned by logistic activities, infrastructural development, and replacements, mainly from school transport. The performance across sub-segments was mixed, with medium commercial vehicles posting the highest growth at 27.07%.
Demand for passenger vehicles was underpinned by the growth in SUVs and constant CNG adoption, which had a 22.62% market share. The adoption rate of electric passenger vehicles grew to 5.77%. The stock position grew marginally to 28-30 days.
Cautious optimism persists:
The FADA dealer sentiment survey for May 2026 suggests an optimistic outlook, with 55.60% of the dealers projecting a growth scenario for May 2026. The demand would be driven by the elongated marriage season, fiscal year plans, and replacement cycles.
Over the coming three months, there is a positive outlook, with 50.90% of the dealers predicting growth. This indicates consistent sentiments despite the anticipated slowing of demand before the festive season due to heatwaves and geopolitical situations in West Asia. Financing issues would continue to pose challenges for the demand side.
Heat waves, geopolitics in West Asia, and fluctuating fuel prices are likely to impact short-term sentiment. However, the supply issue of selected vehicles and turnaround time on financing would need monitoring.
Overall, industry sentiment is cautious but optimistic due to demand momentum, which will persist until the mid-year season.
