New Delhi, 16 April 2026 – India’s passenger vehicle (PV) market continued its strong growth trajectory in March 2026, with 467,900 units registered, up 30.9% year-on-year and 16.2% month-on-month compared to February’s 413,300 units, according to JATO Dynamics’ latest Retail Market Pulse report.
Ravi Bhatia, President of JATO Dynamics India, said: “March 2026 has been a strong month for the Indian passenger vehicle market. What stands out is the breadth of this growth. It is not concentrated in one area but is widespread across OEMs, body types, regions, and customer classifications. The 16.2% improvement from February, combined with a near 31% year-on-year increase, points to strong market readiness and improved supply alignment across the industry.”
SUVs continued to be the strongest structural driver of passenger vehicle growth, with the portfolios of all major OEMs — Maruti, Tata, Mahindra, Hyundai, and Toyota — anchoring volume expansion. Tata and Mahindra recorded particularly strong SUV-led growth, while Maruti’s SUV share continued to rise. The top three OEMs Maruti, Tata, and Mahindra now command close to 70% of the market, with Tata and Mahindra continuing to narrow the gap with Maruti in high-growth SUV segments.
While still niche, EV contribution did grow steadily, with Tata’s EV volumes up 77% year-on-year, though penetration remains primarily within urban and semi-urban buyers. Consumer sentiment stayed positive despite macro uncertainties, supported by strong participation from large metros and expanding Tier-2 hubs alike. Growth is also shifting away from entry-level cars towards compact SUVs, premium hatchbacks, and hybrids, with Toyota and Maruti hybrid vehicles attracting growing interest.
Ravi added: “The market continues to shift decisively toward SUVs, wider regional penetration, and stronger domestic OEM positioning. Balanced fuel-type demand and controlled inventory levels reflect stable industry health, and these conditions support a positive outlook for 2026, though we do expect competition to intensify across compact SUVs and new EV entries.”
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