India's passenger vehicle sales jump 16 pc in March: Report
New Delhi, April 14
Domestic passenger vehicle dispatches to dealers increased by 16 per cent to 4,42,460 units in March, driven by improved demand and inventory build-up at dealerships, according to data released by the Society of Indian Automobile Manufacturers on Tuesday.
Passenger vehicle wholesales had stood at 3,81,358 units in March last year.
Two-wheeler dispatches also recorded strong growth, increasing 19.3 per cent to 19,76,128 units last month compared to 16,56,939 units in the corresponding period a year ago, the industry body said in a statement.
Similarly, three-wheeler dispatches rose 21.4 per cent year-on-year to 76,273 units in March, up from 62,813 units in March 2025.
Moreover, domestic passenger vehicle dispatches from companies to dealers had risen 10.6 per cent year-on-year to 4,17,705 units in February, reflecting continued positive market sentiment, according to data from Society of Indian Automobile Manufacturers.
The broader outlook for the passenger vehicle segment also remains positive, though growth is expected to moderate going ahead.
According to an earlier report, the industry is likely to clock wholesale volume growth of around 7-9 per cent in FY26, supported by strong festive demand, recent GST rate cuts and a steady pipeline of new model launches.
However, growth is projected to ease to 4-6 per cent in FY27 due to a higher base and evolving macroeconomic conditions.
The report also noted that the sector continues to undergo structural changes, with utility vehicles accounting for nearly 67 per cent of total passenger vehicle sales, highlighting an ongoing premiumisation trend. Additionally, increasing adoption of alternative fuel options such as CNG and electric vehicles is contributing to demand diversification.
— IANS
Reader Comments
While the numbers look good, I'm more interested in the shift towards utility vehicles and EVs mentioned at the end. That's the real story. Indian families now prefer SUVs over sedans, and cleaner fuel options are gaining traction. Smart move by the manufacturers.
The 19% jump in two-wheelers is even more impressive! That's the backbone of Indian mobility. Shows that the common man's purchasing power is improving. Bajaj and Hero must be celebrating.
Positive data, but the report itself says growth will moderate. We need to be cautious. High interest rates and fuel prices can dampen this sentiment very quickly. Hope the government keeps supporting the sector with stable policies.
This is fantastic! But as a potential buyer, I wish these dispatches to dealers would also mean better discounts and offers for us customers. The inventory build-up should work in our favor. Time to negotiate hard!
Respectfully, while sales are up, we must not ignore the traffic and pollution this adds to our cities. The report mentions CNG and EVs, but their share is still small. Growth needs to be sustainable, not just in numbers.
The three-wheeler growth at 21% is quietly significant
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