Indian auto demand kicked off FY 2026-27 with a strong start as passenger vehicle dispatches to dealers rose 25.4% year-on-year to 4,37,312 units in April, according to SIAM. Utility vehicles and passenger cars powered the growth, while vans, two-wheelers and three-wheelers also posted sharper gains. Overall vehicle wholesales increased 27.9% to 23,16,671 units despite worries over high commodity prices linked to West Asia disruptions.
India’s automobile sales reached a record high in FY26, boosted by tax cuts, easing interest rates and revised income tax slabs, according to SIAM. Growth spread across vehicle categories: passenger vehicles rose 8%, while exports climbed 24%. Industry leaders expect momentum to continue, even as global uncertainty, geopolitical risks and rising costs remain under watch.
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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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