NewKerala.com

India's PV Wholesale Volumes Surge 16% to 4.4 Lakh Units in March

India's passenger vehicle wholesale volumes rose 16% year-on-year to 4.4 lakh units in March 2026, driven by strong domestic demand and steady OEM production. ICRA projects 4-6% growth in FY27, supported by GST rate cuts and new model launches. Retail sales surged 21% YoY in March, boosting inventory levels to fall from 52-53 days to about 28 days. Utility vehicles continued to dominate, accounting for 68% of total PV volumes in FY26, with export volumes also rising 18%.

Key Points: India PV Wholesale Volumes Rise 16% in March 2026

  • PV wholesale volumes rose 16% YoY to 4.4 lakh units in March 2026
  • Retail sales grew 21% YoY in March
  • Inventory levels fell to 28 days from 52-53 days
  • UV segment accounted for 68% of PV volumes in FY26
2 min read

India's PV wholesale volumes rise 16 pc to 4.4 lakh units in March

India's passenger vehicle wholesale volumes rose 16% YoY to 4.4 lakh units in March 2026. ICRA projects 4-6% growth in FY27, driven by GST cuts and new models.

"The automobile wholesale volume is projected to grow 4-6 per cent in FY27, as demand is supported by GST rate cuts and new model launches - ICRA report"

New Delhi, April 27

India's passenger vehicle wholesale volumes rose 16 per cent year‑on‑year to 4.4 lakh units in March 2026 and improved 6 per cent sequentially, as original equipment manufacturers continued steady production to cater to the robust domestic demand, a report said on Monday.

The automobile wholesale volume is projected to grow 4-6 per cent in FY27, as demand is supported by GST rate cuts and new model launches, the report from ICRA said. The growth of 8.6 per cent in FY2026 has been partly offset by the elevated base of FY2026 and the weak monsoon outlook.

Retail sales recorded a strong YoY growth of 21 per cent year‑on‑year in March, supported by the steady traction of new model launches and the sustained positive impact of the revised Goods and Services Tax (GST) rates.

Wholesale volumes declined by 0.2 per cent in H1 FY2026 while it rose considerably by 17 per cent in H2 FY2026, following the change in GST rates. Retail volumes also expanded by 11 per cent to an all-time high of 4.6 million units.

The report cited the Federation of Automobile Dealers Association (FADA) data that inventory levels fell to about 28 days by March 2026 from 52-53 days at the end of March 2025 and 60 days in September 2025, aided by stronger retail offtake.

Utility vehicles (UVs) accounted for 68 per cent of the overall passenger vehicle (PV) volumes in FY26. While UVs continue to drive most of the volumes, volumes in the mini, compact and super-compact segments have recovered slightly after the GST rate cuts.

The UV segment is likely to remain the key volume driver, though demand for passenger cars is also expected to go up.

Export volumes rose by a healthy 18 per cent in FY2026, albeit on a relatively moderate base. The growth indicates the increasing supply push from Indian OEMs, the report noted.

- IANS

Share this article:

Reader Comments

P
Priya S
Impressive numbers, but let's not forget the inventory levels were as high as 60 days in September 2025. Now it's down to 28 days—that's a relief for dealers! Hope the trend continues. UVs are great but we need more affordable hatchbacks too for first-time buyers.
J
James A
Interesting data from ICRA. The 16% growth in wholesale is solid, but retail growing 21% in March is even better—means actual demand is strong. Exports up 18% too, that's a good sign for Indian manufacturing. Let's see if FY27's 4-6% projection holds up.
V
Vikram M
Been waiting for a new UV myself! The GST cuts on smaller cars helping the mini and compact segments recover is a welcome move. But 4-6% growth projection seems conservative—if monsoon is normal, we could see double digits again. Fingers crossed! 👍
S
Sarah B
Solid performance by OEMs. The shift from 52-53 days of inventory to 28 days is remarkable—shows better planning. But I hope the industry doesn't get too UV-crazy and forget about sedans. Some of us still prefer a good old sedan for comfort! 😊
K
Kavya N
The GST rate cuts were a smart move by the government—retail sales hitting an all-time high of 4.6 million units says it all. But one concern: with EVs still not taking off as expected, are we over-reliant on petrol/diesel? Need more hybrid options too.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50