Whalesbook
India's Auto Sector Kicks Off Fiscal Year 2027 With Strong April Sales
India's automotive industry began fiscal year 2027 with a broad-based recovery in April, showing widespread growth across all its key segments. The upturn included motorcycles, scooters, premium bikes, electric two-wheelers, passenger vehicles, and exports.
Two-Wheeler Segment Leads Revival
The two-wheeler segment, which accounted for most of the over five lakh additional vehicles sold, was central to the revival. Hero MotoCorp reported a significant 84.5% year-on-year jump in domestic dispatches, selling 5,32,433 units compared to 2,88,524 units last April. This strong performance, driven by models like the Splendor and HF Deluxe, reflects robust demand in rural and semi-urban areas.
Yamaha India also saw domestic sales climb 45.2% to 67,988 units. Royal Enfield continued its positive trend, increasing domestic sales by 37% to 1,04,129 units, primarily on the strength of its 350cc models. The overall scooter market grew by 26.2%, reaching 6,91,993 units. In the electric two-wheeler sector, Ather Energy's domestic sales rose 67.1% to 22,832 units.
Passenger Vehicles Show Strong Momentum
Passenger vehicles also experienced a robust April. Maruti Suzuki India led in absolute sales growth, with domestic sales increasing by 35.3% to 1,87,704 units. This expansion was supported by strong volumes from affordable models like the Wagon R and Swift, alongside SUVs such as the Brezza and Fronx, highlighting the company's appeal across different vehicle types.
Honda Motor India reported a 17% rise in domestic sales, and Toyota Kirloskar Motor saw a 21.6% increase. SUVs, which make up nearly 65% of passenger vehicle sales, continue to dominate the market. Notably, passenger car sales grew faster at 32.7%, suggesting a potential return of first-time car buyers, a segment where Maruti Suzuki holds a strong position.
Exports Record Significant Growth
Exports were another key highlight, expanding by 38% year-on-year to 6,28,128 units. Bajaj Auto was a major contributor, with its two-wheeler exports surging 77.8% and three-wheeler exports more than doubling. This export growth across markets in Africa, Latin America, and South Asia reinforces India's role as a manufacturing and export hub.
Hero MotoCorp nearly doubled its overseas shipments, and Honda Motorcycle & Scooter India also recorded a substantial increase in exports. This synchronized recovery in international markets points to broader strength for Indian two- and three-wheeler manufacturers.
Expert Sees Healthier Demand Distribution
Hemal Thakkar, Senior Practice Leader and Director at CRISIL Intelligence, commented that the April data indicates a more balanced distribution of demand across the industry. "When you see commuter motorcycles, scooters, premium products, passenger vehicles and exports all moving up together, it indicates that demand is becoming more well distributed," he stated. This broader, more resilient growth pattern suggests a positive start for India's auto sector in FY27.