Five of six categories and the total industry registered all-time April records, validating the structural demand momentum carried forward from second half of FY2026, it said.
FADA said two-wheeler retail sales increased 13.01 per cent to 19,16,258 units, while passenger vehicle sales grew 12.21 per cent to 4,07,355 units in April 2026.
Commercial vehicle sales grew 15.02 per cent to 99,339 units, while three wheeler sales grew 7.19 per cent to 1,06,908 units.
In April 2026, Tractor sales jumped 23.22 per cent to 75,109 units.
However, the construction equipment sales declined 2.25 per cent to 6,348 units in April 2026.
The April 2026 performance clearly underlines that the structural demand momentum which defined the second half of FY2026 has carried into the new financial year. The sequential month on month decline of 3.01 per cent reflects the customary post-March seasonal reset rather than any erosion in underlying demand, Sai Giridhar, Vice President, FADA said.
Sustained tailwinds from GST 2.0 affordability gains, RBI’s supportive rate stance, healthy rural cashflows post a strong rabi cycle and an extended marriage season, FADA said.
EV transition continued to deepen — 3W EV share rose to 60.38 per cent, PV EV share improved to 5.77 per cent, while 2W EV share normalised to 7.76 per cent after the March pre-buying spike, it said.
Looking ahead to May 2026, dealer sentiment remains constructive with 55.60 per cent of dealers expecting growth, 35.38 per cent anticipating flat performance, and only 9.03 per cent foreseeing a decline — a reading that is meaningfully firmer than the 50.56 per cent growth expectation captured in the previous survey for April, FADA said.
Demand in May is expected to be supported by the extended marriage season that peaks through May and June, residual buying triggered by Akshaya Tritiya in select northern and western markets, the new financial-year OEM scheme cycle and sustained replacement demand in the CV segment, it said.
The Two-Wheeler outlook is anchored in Bharat — improving rural cashflows, agri-cycle preparation purchases and continued post-GST 2.0 affordability — while Passenger Vehicles are likely to benefit from healthy booking pipelines, refreshed product launches and improving small-car traction, FADA said.
Commercial Vehicle dealers expect continued momentum, supported by infrastructure capex flow, steady goods-movement activity and school-bus demand. That said, the India Meteorological Department’s forecast of an above-normal heatwave across several states, the geopolitical situation in West Asia and its potential pass-through to fuel prices, selective supply constraints on running models remain factors to watch, it said.
Overall, the outlook for May 2026 appears Cautiously Optimistic, with marriage-season demand, stable financing conditions and the broader policy continuity of the past nine months expected to keep retail momentum supportive, FADA said.
Looking at the May-June-July 2026 period, dealer confidence remains broadly steady, it added.
Encouragingly, 36.46 per cent of dealers have revised their FY2027 retail expectations upwards in this survey, with 46.21 per cent retaining the existing view, indicating that the underlying confidence in the medium-term India consumption story remains well-anchored. Overall, the next three months’ outlook hence remains measured but cautiously optimistic — the growth momentum is intact, but as the industry transitions from the strong Q4 FY’26 close to a more calibrated mid-year phase, expectations are normalising rather than weakening, FADA said.
