India’s automobile industry has kicked off FY27 with unexpectedly resilient momentum, even as geopolitical tensions and global economic worries linger in the background. Across segments, automakers are reporting healthy growth driven by solid consumer demand. Improved rural sentiment is playing an outsized role, while passenger vehicles and two-wheelers continue to gather steam. With these engines of demand accelerating at the start of the new fiscal year, the industry is leaning into early optimism for the months ahead.
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.
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Honda plans to begin introducing India-specific car models from 2028 as it rebuilds and expands its automobile business. The company says India is one of its top growth markets alongside North America and Japan, and will rework specifications to match local preferences. Honda also intends to lift two-wheeler production in India to about 80 lakh units by 2028 from 62.5 lakh, using strong motorcycle sales to encourage upgrades to passenger vehicles.
Uber CEO Dara Khosrowshahi says the company will open two tech centres in Bengaluru and Hyderabad by the end of 2027, expanding its India footprint. He also flagged renewed focus on Uber’s two-wheeler business, a growth priority even as regulators tighten rules and fuel prices climb, squeezing costs and shaping strategy.
India’s electric vehicle sales jumped 75.14% in April 2026, led by Tata Motors which posted a 77.17% rise in electric passenger vehicles. Electric two-wheeler sales climbed 60.73% with TVS topping the segment. Electric three-wheelers grew modestly, while electric commercial vehicle sales more than doubled, signaling broad-based adoption.
TVS Motor Company reported a 7% year-on-year rise in total sales for April 2026, reaching 4,73,970 units. Two-wheeler demand improved, led by a sharp increase in scooter sales. EV sales and three-wheeler sales also grew substantially, while international business added momentum—pointing to a strong month overall.
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Royal Enfield reported a 31 percent rise in total sales for April 2026, with domestic volumes up 37 percent. While exports dipped slightly, the company’s momentum stayed strong thanks to healthy performance in key international markets. The spotlight is now on its debut electric motorcycle, the Flying Flea C6, which has received positive early feedback.
Electric two-wheeler registrations fell 20% month-on-month in April to 1.4 lakh units, after a 59% surge in March, according to Vahan data. While most OEMs saw double-digit declines, Ola Electric stood out with a 20% jump to 11,391 units, aided by new variants, Bharat Cell investments, and aggressive pricing. Startups struggled to gain share as competition intensified.
India’s electric two-wheeler market cooled in April with registrations down 22% to 1.48 lakh units after a March surge. While the sector broadly declined, Ola Electric bucked the trend, raising sales by 20% and improving its market share. Analysts link the slowdown to the aftershocks of FY26 growth and aggressive March buying by rivals.
TVS Motor Company has officially launched operations in Zambia, signing Zamoto Manufacturing Ltd as its distributor. The company plans to grow its African footprint by introducing eight products spanning taxi, commercial, personal and premium segments. The move targets mobility demand in a country seeing fast urbanization, offering buyers options for different use cases.
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Classic Legends says it is preparing a large jump in production capacity because its current plant is nearing its limit. After earlier challenges, sales have recovered sharply, leaving the company sold out with more bookings than it can fulfill today. It is now evaluating a greenfield factory and expects output to rise significantly in the coming years.
Classic Legends co-founder Anupam Thareja says the company wants faster growth by leaning into scrambler motorcycles, pitching them as the “SUV of motorcycles.” The firm has already launched new Yezdi and BSA scrambler models and plans four more this fiscal year. It also targets expanding its dealership network to 500 by FY27.
Yezdi and BSA have unveiled two new scrambler motorcycles in India: the Yezdi Scrambler 350 and the BSA Scrambler 650. Positioned to ride the momentum of the premium scrambler segment, both models are pitched as versatile machines for everyday city cruising and light off-road exploring. The debut adds fresh options for riders seeking style and capability across mixed terrain.
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