New Delhi, April 14 : Domestic passenger vehicle dispatches to dealers increased by 16 per cent (year-on-year) to 4,42,460 units in March, driven by improved demand and inventory build-up at dealerships, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.

Passenger vehicle wholesales had stood at 3,81,358 units in March last year.

Two-wheeler dispatches also recorded strong growth, increasing 19.3 per cent to 19,76,128 units last month compared to 16,56,939 units in the corresponding period a year ago, the industry body said in a statement.

Similarly, three-wheeler dispatches rose 21.4 per cent year-on-year to 76,273 units in March, up from 62,813 units in March 2025.

Moreover, domestic passenger vehicle dispatches from companies to dealers had risen 10.6 per cent year-on-year to 4,17,705 units in February, reflecting continued positive market sentiment, according to data from Society of Indian Automobile Manufacturers.

The broader outlook for the passenger vehicle segment also remains positive, though growth is expected to moderate going ahead.

According to an earlier report, the industry is likely to clock wholesale volume growth of around 7â??9 per cent in FY26, supported by strong festive demand, recent GST rate cuts and a steady pipeline of new model launches.

However, growth is projected to ease to 4â??6 per cent in FY27 due to a higher base and evolving macroeconomic conditions.

The report also noted that the sector continues to undergo structural changes, with utility vehicles accounting for nearly 67 per cent of total passenger vehicle sales, highlighting an ongoing premiumisation trend. Additionally, increasing adoption of alternative fuel options such as CNG and electric vehicles is contributing to demand diversification.

/IANS