Passenger vehicle wholesales rise 16% in March despite West Asia conflict

Passenger vehicle wholesales rose 16.3 per cent in March, driven by GST-led demand recovery and strong SUV traction, even as geopolitical tensions weighed on costs

Domestic passenger vehicle (PV) wholesales in March stood at 450,000 units, recording a 16.3 per cent year-on-year (Y-o-Y) increase, as the demand momentum following the goods and services tax (GST) rate cuts in September helped the industry shrug off concerns triggered by the ongoing West Asia conflict.

 

The PV industry's total wholesales (dispatches to dealers) increased to 4.7 million units in financial year 2025-26 (FY26) from 4.34 million units in FY25, marking an 8.3 per cent Y-o-Y growth, due to a strong recovery in the latter half of the year.

 

Maruti Suzuki India Ltd (MSIL), the market leader, reported wholesales of 166,219 units in March 2026, recording a 10.3 per cent Y-o-Y increase.

   

Partho Banerjee, senior executive officer - marketing & sales, MSIL, said commodity prices had been rising since December, even before the conflict, and the company had so far absorbed these costs to support a shift from two-wheelers (2Ws) to PVs. However, with input cost pressures intensifying after the conflict, the company may now have to consider price hikes, he mentioned.

 

The GST cuts led to a sharp pickup in small car demand in the second half of the financial year (H2FY26), with around 175,000 units sold, registering a 12 per cent Y-o-Y increase, he said. However, production constraints limited further sales, and dealer inventory has now tightened to roughly 12 days, Banerjee added.

 

He also said the company sold 2,205 units of its newly launched e-Vitara in March, and it expects volumes to remain steady until capacity constraints ease.

 

Banerjee also mentioned that the PV industry could grow by around 5 per cent in FY27, with a possible 1 percentage point variation, but cautioned that a prolonged conflict could alter this trajectory.

 

Rahul Bharti, senior executive officer - corporate affairs, said MSIL’s operations and production remain on track despite the ongoing conflict. He added that exports continue to be diversified across about 100 countries and remain buoyant, although higher shipping costs are emerging as a challenge.

 

The wholesales of Tata Motors Passenger Vehicles (TMPV) saw a very strong growth in March, with dispatches rising to 66,192 units from 51,616 units, a 28.2 per cent Y-o-Y increase, driven by strong traction in Sport Utility Vehicles (SUVs) and electric vehicles (EVs).

 

Shailesh Chandra, managing director and chief executive officer (MD&CEO) of TMPV, said the PV industry has touched record volumes of around 4.7 million units in FY26, reflecting about 8 per cent Y-o-Y growth, with a strong rebound in H2FY26 supported by GST changes and festive demand.

 

He added that consumer preference for greener technologies accelerated, with CNG volumes growing about 20 per cent Y-o-Y and EV volumes crossing 200,000 units, aided by rising consumer confidence and broader product offerings from automakers.

 

Chandra said TMPV recorded its highest ever annual sales of over 640,000 units in FY26, delivering about 15 per cent Y-o-Y growth, and emerged as the second-ranked player in the industry in H2FY26 based on Vahan registrations. He also highlighted that the company’s international business crossed 10,000 units, supported by its re-entry into South Africa.

 

Mahindra & Mahindra (M&M) maintained its growth momentum, with wholesales touching 60,272 units in March, a 25.4 per cent Y-o-Y increase, supported by sustained demand for its utility vehicle portfolio.

 

Hyundai Motor India's PV wholesales stood at 55,064 units in March, reflecting a 6.3 per cent Y-o-Y increase, indicating stable demand across its SUV lineup.