Passenger vehicle dispatches rise 16% in March to 4.42L units
What's the story
The Society of Indian Automobile Manufacturers (SIAM) has reported a significant growth in India's auto industry for March. The body revealed that passenger vehicle dispatches surged by 16% year-on-year to 4.42 lakh units. This growth is mainly driven by strong demand across all segments, including two-wheelers and three-wheelers.
Market performance
Two-wheeler sales rose 19.3% to 19,76,128 units
Along with passenger vehicles, two-wheeler sales also witnessed a massive jump of 19.3% to 19,76,128 units in March. Three-wheeler dispatches were up by an impressive 21.4% at 76,273 units during the same period. This broad-based demand across segments indicates a healthy recovery and growth in India's automotive market.
Fiscal performance
Record fiscal year for all segments
In the fiscal year 2025-26, India witnessed a record wholesale of 2.82 crore units, up 10.4% YoY. All segments, including passenger and commercial vehicles as well as two and three-wheelers, recorded their highest-ever sales in a fiscal year. SIAM President Shailesh Chandra attributed this growth to positive market sentiments created by GST 2.0 reforms and multiple repo rate cuts during the year.
Sales breakdown
Impressive sales figures for FY26 across all vehicle categories
In FY26, passenger vehicles posted wholesales of 46.43 lakh units, a 7.9% increase from the previous year. Two-wheeler wholesales also saw an impressive jump of 10.7% to 2.17 crore units during the same period. The commercial vehicle segment posted sales of 10.79 lakh units in FY26, registering a growth of 12.6%. Three-wheeler sales were at 8.36 lakh units as against last year's figures, up by a whopping 12.8%.
Future prospects
Chandra cautioned about uncertainties arising from West Asia conflict
Chandra said that domestic demand and macroeconomic fundamentals remain strong as we enter FY26-27, which should support steady growth for the industry. However, he cautioned about uncertainties arising from the West Asia conflict, which could impact production, commodity prices, fuel prices, freight rates and the overall economy. SIAM also flagged concerns over crude oil prices due to geopolitical tensions in West Asia.