The Indian automobile industry in September 2026 registered retail sales of 25,36,920 units, up 31.82% year-on year (YoY) and a growth of 4.69% month-on-month (MoM), according to data released by the Federation of Automobile Dealers Association (FADA) on Tuesday (October 6, 2026).

Two-wheeler retail

Two-Wheeler retail sales stood at 17,90,188 units, up 33.08% YoY and 4.41% MoM — the best-ever September, now 15.3% above the pre-Covid September peak of 2018.

Dealers cited festive buying in the first half of the month, steady rural and semi-urban demand, a pull towards premium motorcycles and accelerating EV adoption, for the surge.Two wheeler EV share touched 11.58%.

Commercial Vehicle retails crossed the one-lakh mark in a September for the first time, at 1,03,557 units, up 37.62% YoY and 14.09% MoM.

Passenger Vehicle retails at 4,27,213 units, grew 32.10% YoY and 6.17% MoM. 

Petrol vehicle sale bounces back

After alternative fuels overtook petrol for the first time in August, petrol in September marginally bounced back to 41.27% against alternative fuels’ 41.00% (CNG 23.11%, Hybrid 9.44%, EV 8.45%), FADA said.

“The August crossover was therefore an inflection, not a decisive flip — petrol and alternative fuels are now effectively at parity, trading the lead month to month, even as EV share rose to a fresh high and CNG eased,” FADA preisdent Sai Giridhar said. 

Passenger vehicles inventory at dealerships rose by a further 5 days over August-end to around 43–45 days — well above FADA’s recommended 21-day benchmark, with 60% of PV dealers reporting higher stock due to upcoming festivals, he added. 

Three-Wheelers at 1,32,570 units (+22.25% YoY) recorded their best-ever September with EV penetration at 64.90%.

Tractors at 76,906 units grew 13.75% YoY but fell 12.58% MoM.

Wheeled Construction Equipment rose 38% to 6,486 units. 

EV penetration

Total EV retails across categories reached an all-time monthly high of about 3.34 lakh units, taking overall EV penetration to roughly 13%, according to FADA data. 

The reported growth in September 2026 was from a year ago period when buyers deferred purchases in the week before GST 2.0 took effect on 22 September 2025. So it does not provide the clear picture, FADA said. 

“The cleaner signals are three. It was the best-ever September across five of our six categories and, with it, the best-ever first half of any financial year at 1,55,12,319 units, up 20.77%; retail rose 4.69% over August; and even setting the distorted September aside, FY’27’s first five months grew about 17%, which is the truer underlying run-rate,” Mr Giridhar said. 

“One year on from GST 2.0, affordability remains the single engine of this cycle — and dealers now flag further price increases eroding that very affordability as their foremost risk for the quarter ahead. Protecting the GST gain is, to our mind, the key to converting the festive season into durable growth,” he added.

In the near-term outlook FADA said Two-Wheelers should see stronger booking-to-retail conversion on auspicious days, supported by rural cashflows, easier finance and rising EV interest.

Passenger Vehicles expect pending bookings to convert through Navratri and Dussehra, aided by fresh launches and festive schemes.

Commercial Vehicles should stay firm on freight, infrastructure and a healthy enquiry pipeline,” it stated. 

Published – October 06, 2026 11:25 am IST

Automobile retail sales in CY25 grew 7.71% year-on-year (YoY) with total sales of over 2.81 crore vehicles according to data released by the Federation of Automobile Dealers Associations (FADA) on Tuesday (January 6, 2026).

FADA president C.S. Vigneshwar said: “India’s auto retail delivered a confident close, with total retails at 2,81,61,228 units, registering a 7.71% YoY growth. The year, however, was a tale of two halves — January to August remained subdued despite supportive macro cues such as direct tax relief in the Union Budget and RBI’s cumulative rate easing through 2025. During this phase, customers stayed value-conscious and financier approvals remained selective in pockets, resulting in uneven conversions across markets.”

“The turning point came from September onwards, when the landmark GST 2.0 rate rationalisation — including meaningful reductions for mass segments like small cars, two-wheelers (up to 350 cc), three-wheelers and key commercial categories — improved affordability and lifted sentiment, leading to a clear upshift through September to December,” he said.

Category-wise, two-wheelers (2W) grew 7.24%, passenger vehicles (PV) rose 9.70%, commercial vehicles (CV) expanded 6.71%, and tractors posted 11.52% growth.

“Importantly, the year saw broad-based participation — urban retail grew 8.20% and rural 7.31% — and within PVs, rural demand was a standout, growing 12.31% versus 8.08% in urban markets, underlining the strengthening spread of personal mobility beyond metros,” Mr. Vigneshwar said.

CY’25 also reinforced the transition underway — EV share moved up in 2W, PV, CV and remained dominant in 3W, while CNG strengthened its presence in PV and CV, signalling a more diversified mobility mix, he said.

“Overall, CY’25 closes on a celebratory note—stronger demand visibility, healthier enquiry pipelines and a more confident consumer, as we step into 2026,” he added.

December proved to be a strong finish to the calendar year for auto retail. The industry retailed 20,28,821 vehicles, posting a healthy 14.63% YoY growth.

“The month clearly benefited from the continued positive sentiment post GST 2.0, year-end offers, and a fair amount of pre-buying ahead of expected price revisions in January, helping dealers convert enquiries and spillover bookings in a time-bound manner,” Mr. Vigneshwar said.

In two-wheelers, retail was up 9.50% YoY. While demand stayed steady, the month was also shaped by select supply constraints and model-wise availability, with many customers advancing their purchase decisions due to impending price increases.

“It is encouraging to see the transition continue — EV share in 2W improved to 7.40% (vs. 6.13% last year), reflecting rising acceptance, especially in urban markets where growth remained stronger than rural on the back of better liquidity flow,” he added.

Commercial vehicles reported 24.60% YoY growth. The momentum was led by underlying economic activity, improved goods movement and sustained demand in the load segment, with medium commercial vehicle (MCV) growth particularly strong and LCVs/HCVs also reporting healthy expansion.

“Passenger carrier demand remained supportive as well. That said, we continue to flag financing turnaround time and approval selectivity as a friction point in parts of the market — something that needs sharper focus to sustain momentum,” the FADA president said.

Passenger vehicles continued their positive run, up 26.64% YoY, with rural PV growth at 32.40% outpacing urban growth — an important indicator of widening mobility demand beyond metros, according to FADA.

Dealers also used December to liquidate Model Year (MY) 2025 stocks on the back of attractive schemes and better model mix availability. Inventory for PVs is currently around 37-39 days, which reduced by around 7 days from previous month, it said.

The fuel mix also underlines the shift underway — CNG is now 21% of PV retail and EV is 4%, signalling a steadily diversifying customer preference, it added.

Published – January 06, 2026 05:06 pm IST