The Indian auto retail industry opened FY27 on an exceptionally strong note, retailing a record 26,11,317 units in April — a 12.94 per cent growth, the Federation of Automobile Dealers Associations (FADA) data showed on Tuesday.

Two-wheeler retails continued their robust momentum, reaching 19,16,258 units last month, the best-ever April for this category.

The demand engine remained broad-based with urban markets growing 14.07 per cent (on-year) and rural markets growing 12.30 per cent.

“With two-wheelers at +13.01 per cent, three-wheelers at +7.19 per cent, passenger vehicles at +12.21 per cent, commercial vehicles at +15.02 per cent, tractors at +23.22 per cent, and construction equipment at -2.25 per cent, five of the six vehicle categories — along with the total industry — registered all-time April records,” said FADA Vice President Sai Giridhar.

This clearly underlines that the structural demand momentum which defined the second half of FY26 has carried into the new financial year, he mentioned.

Commercial vehicle retails in April stood at 99,339 units. From a market mix standpoint, rural markets grew a striking 20.25 per cent YoY growth compared to urban at 10.22 per cent.

The MCV sub-segment continued its standout run at +27.07 per cent YoY, while LCVs grew 17.76 per cent and HCVs 8.25 per cent — reflecting participatory growth across sub-segments.

Looking at the May-June-July period, dealer confidence remains broadly steady, with 50.90 per cent of dealers now expecting growth — marginally firmer than the 49.81 per cent growth expectation recorded in the previous survey for the April-June window.

This suggests that the dealer community continues to view the underlying demand pulse as intact even as it factors in the customary seasonal lull that typically sets in between the conclusion of the marriage season and the onset of the festive build-up, said the FADA report.

Notably, 36.46 per cent of dealers have revised their FY27 retail expectations upwards, 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 FY26 close to a more calibrated mid-year phase, expectations are normalising rather than weakening,” said the report.