April 2026 dispatches show demand resilience, all segments see growth. While original equipment manufacturers kept price hikes to a minimum, the market has already priced in a 5-6% fuel price increase expected in May. Despite these headwinds, auto sales growth underscores the underlying resilience of the Indian economy.

PV segment dispatches grew to 4.45 lakh units. Two-wheeler dispatches and retail sales both touched 19 lakh units in April, marking roughly 15% growth year-on-year. The three-wheeler and commercial vehicle segments posted double-digit growth, while the tractor segment expanded by 15%. Electric vehicle sales momentum shows no signs of slowing and the growth momentum is expected to continue.

However, headwinds are building. El Niño's impact could reduce average rainfall by 7-8%, potentially dampening rural demand. Rising input costs combined with the anticipated fuel price hike pose risks to sustained growth.

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