• Wholesale volumes rose by 16% year-on-year (YoY) to 4.4 lakh units in March 2026, as original equipment manufacturers (OEMs) continued steady production to cater to the robust domestic demand. On a sequential basis, wholesale dispatches improved by 6%. Retail sales recorded a strong YoY growth of 21% in March 2026, 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 grew by 8.6% YoY to an all-time high of 4.7 million units in FY2026. Wholesale volumes declined by 0.2% in H1 FY2026 while it rose considerably by 17% in H2 FY2026, following the change in GST rates. Retail volumes also expanded by 11% to an all-time high of 4.6 million units.
• Inventory levels further reduced to around 28 days by March 2026 from 52-53 days at the end of March 2025 and 60 days as of September 2025, as per the Federation of Automobile Dealers Association (FADA), aided by stronger retail offtake. In FY2026, utility vehicles (UVs) accounted for 68% of the overall passenger vehicle (PV) volumes. 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% in FY2026, albeit on a relatively moderate base. The growth indicates the increasing supply push from Indian OEMs. The upward trend continued with Maruti Suzuki India Limited maintaining its lead as the top exporter (49% market share in exports), followed by Hyundai Motor India Limited.

Exhibit: Trend in monthly PV volumes – Domestic (in units)

Source: SIAM data, FADA, ICRA Research, industry sources; Note: Although SIAM’s monthly statement does not include Tata Motors Limited (TML) from April 2020, TML’s volumes have been factored in the above trend