India’s PV wholesale volumes rise 16 pc to 4.4 lakh units in March
India’s passenger vehicle wholesale volumes rose 16 per cent in March 2026, driven by strong demand and GST cuts, while FY27 growth is projected at 4 to 6 per cent. Utility vehicles continue to dominate, with exports also showing healthy growth
New Delhi: India’s passenger vehicle (PV) wholesale volumes rose 16 per cent year‑on‑year (YoY) to 4.4 lakh units in March 2026 and improved 6 per cent sequentially, as original equipment manufacturers (OEMs) continued steady production to cater to the robust domestic demand, a report said on Monday.
The automobile wholesale volume is projected to grow 4–6 per cent in FY27, as demand is supported by GST rate cuts and new model launches, the report from ICRA said. The growth of 8.6 per cent in FY2026 has been partly offset by the elevated base of FY2026 and the weak monsoon outlook.
Retail sales recorded a strong YoY growth of 21 per cent year‑on‑year in March, 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 declined by 0.2 per cent in H1 FY2026 while it rose considerably by 17 per cent in H2 FY2026, following the change in GST rates. Retail volumes also expanded by 11 per cent to an all-time high of 4.6 million units.
The report cited the Federation of Automobile Dealers Association (FADA) data that inventory levels fell to about 28 days by March 2026 from 52–53 days at the end of March 2025 and 60 days in September 2025, aided by stronger retail offtake.
Utility vehicles (UVs) accounted for 68 per cent of the overall passenger vehicle (PV) volumes in FY26. 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 per cent in FY2026, albeit on a relatively moderate base. The growth indicates the increasing supply push from Indian OEMs, the report noted.
