India’s auto market started FY27 strongly in April 2026, with EVs and SUVs driving the momentum. Overall EV sales jumped 41% YoY, led by a 61% surge in electric two-wheelers. Tata Motors stood out in passenger vehicles, clocking 59,000 sales and powering its growth largely through the Punch and Nexon SUVs.
India’s auto sector is expected to sustain strong demand for the next 2–3 quarters, with growth likely to remain elevated through CY26. Improving affordability and a firmer rural sentiment are supporting volume gains across passenger vehicles, commercial vehicles, and two-wheelers. At the same time, rising global risks could weigh on exports and margins, even as EV adoption accelerates.
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Ola Electric shares have climbed more than 60% from recent lows after April registrations rose 20% month on month, lifting sentiment even as the overall EV market weakened. Still, analysts are cautious, pointing to slower-than-expected EV adoption and execution risks that could cap further upside despite the near-term positive read.
Auto industry body SIAM says it is reviewing draft CAFE III fuel efficiency norms and will consult members on how manufacturers can meet the proposed implementation timeline. SIAM President Shailesh Chandra declined to comment on potential incentives for small cars, noting manufacturers are split on the idea. SIAM also argues for an enabling environment for EV adoption rather than strict mandates.
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