India’s automobile industry began FY27 with one of its most broad-based recoveries in recent quarters, as growth spread across commuter motorcycles, scooters, premium bikes, electric two-wheelers, passenger vehicles and export markets. The improvement was not confined to one segment or one company, but was visible across the industry’s core demand drivers.

Hero MotoCorp led the rebound in mass-market mobility, Maruti Suzuki captured the largest share of passenger vehicle growth, and Bajaj Auto emerged as the biggest beneficiary of a sharp recovery in overseas shipments, according to data from the Society of Indian Automobile Manufacturers (SIAM).

Rural consumers supported Hero’s commuter motorcycle sales, urban families backed scooter demand at Honda Motorcycle & Scooter India and TVS Motor, premium buyers continued to favour Royal Enfield, electric scooter customers lifted Ather Energy, and Bajaj translated stronger foreign demand into a sharp export surge.

Mass-market mobility returns

The clearest sign of revival came from two-wheelers, which accounted for the bulk of the more than five lakh additional vehicles sold in April. Hero MotoCorp’s domestic dispatches jumped 84.5 per cent to 5,32,433 units from 2,88,524 units a year earlier, an increase of nearly 2.44 lakh units that made it the strongest proxy for improving rural and semi-urban demand.

The gain was supported by Hero’s commuter portfolio, including the Splendor and HF Deluxe, models that tend to track rural recovery and replacement demand. The rebound was not limited to one company or one buyer class. Yamaha Motor posted one of the sharpest percentage gains among established manufacturers, with domestic sales rising 45.2 per cent to 67,988 units from 46,826 units, aided by products such as the RayZR, Fascino and FZ range.

Royal Enfield’s domestic sales increased 37 per cent to 1,04,129 units from 76,002 units, indicating that premium motorcycle demand remained firm. The company’s growth was led by its 350cc portfolio, including the Classic 350, Bullet 350 and Hunter 350, which continue to anchor volumes in the mid-premium segment.

Scooter sales across the industry rose 26.2 per cent to 6,91,993 units from 5,48,370 units, aided by Honda’s Activa, TVS Jupiter and Ntorq, and Suzuki’s Access. In the electric two-wheeler space, Ather Energy stood out with domestic sales up 67.1 per cent to 22,832 units from 13,663 units, with demand supported by its 450 series and the family-oriented Rizta.

SUVs still dominate, but small cars rebound

Passenger vehicles also had a strong month, but the more important point is how the gains were distributed among manufacturers. Maruti Suzuki was the biggest absolute gainer, with domestic sales rising 35.3 per cent to 1,87,704 units from 1,38,704 units, adding roughly 49,000 vehicles in a single month and making it the largest contributor to passenger vehicle growth in April.

The company’s increase was aided by stronger volumes in models such as the Wagon R, Swift and Dzire at the affordable end, alongside the Brezza, Fronx and Grand Vitara in the SUV segment. That dual strength highlights Maruti’s unique ability to benefit from both the recovery in entry-level demand and the continuing shift toward utility vehicles.

Hyundai Motor India increased domestic sales 17 per cent to 51,902 units from 44,374 units, supported by the Creta, Venue and Exter, as well as compact models such as the Grand i10 Nios.

Toyota Kirloskar Motor grew 21.6 per cent to 30,156 units from 24,789 units, led by the Innova Hycross, Urban Cruiser Hyryder and Fortuner.

Mahindra & Mahindra continued to benefit from the Scorpio and XUV range, while Kia India gained from products such as the Sonet and Seltos, underlining the intensity of competition in the SUV market.

Utility vehicles accounted for 2,44,280 units, or nearly 65 per cent of passenger vehicle sales, confirming that SUVs remain the main source of volume and profitability for the industry. At the same time, passenger car sales rose 32.7 per cent to 1,20,945 units from 91,148 units, faster than the 21.5 per cent increase in utility vehicles.

The rebound in smaller cars sharpens one of the industry’s oldest competitive dynamics: any return of first-time buyers tends to disproportionately benefit Maruti, whose scale, cost structure and deep distribution network in smaller towns remain difficult for rivals such as Hyundai and Renault to match.

Exports become the fastest-growing engine

Exports were another major highlight of the month, expanding 38 per cent year-on-year to 6,28,128 units from 4,55,330 units and outpacing domestic sales growth.

This reinforced India’s role as a manufacturing and export base for emerging markets. Bajaj Auto was the clearest beneficiary of that trend. The company’s two-wheeler exports surged 77.8 per cent to 2,29,890 units from 1,29,322 units, while three-wheeler exports more than doubled to 34,726 units from 15,663 units. In all, Bajaj added nearly 1.19 lakh export units in April, reflecting stronger demand across Africa, Latin America and South Asia.

The company’s export-led growth continues to be anchored by the Pulsar and CT range, along with its commercial three-wheeler portfolio.

The export recovery was broader than Bajaj alone. Hero MotoCorp nearly doubled overseas shipments to 33,653 units from 16,885 units, helped by strengthening demand for its commuter motorcycles. Honda Motorcycle & Scooter India increased exports to 79,632 units from 57,965 units, while TVS Motor also continued to contribute meaningfully to overseas volumes. That spread suggests Indian two- and three-wheeler makers are benefiting from a more synchronised recovery in several international markets.

Hemal Thakkar, Senior Practice Leader and Director at CRISIL Intelligence, said the April numbers point to a healthier 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 rather than concentrated in one pocket of the market,” he said.

The broader implication is that India’s auto industry no longer relies on a single product segment or consumer cohort for growth. With demand improving across entry-level commuters, premium products and global markets, the sector appears to be entering FY27 with a wider and potentially more resilient growth base than the headline sales figures alone suggest.

Published on May 14, 2026