In July 2026, the Indian automobile industry retailed 25,91,138 units, up 25.89% YoY, making it the strongest July growth in the series outside COVID-distorted base years, according to Federation of Automobile Dealers Associations (FADA).

Growth during the month was broad-based with Wheeled Construction Equipment up 46.07% YoY, 2 Wheelers (2W) up 28.25% YoY, Tractors up 28.10% YoY, Commercial Vehicles (CV ) up 24.04%, Passenger Vehicle (PV ) up 19.13% YoY and 3-Wheeler (3W) up 16.16% YoY as per data released by FADA.

Total EV retails touched 3,27,901 units — the highest for any month in history — with 2W and CV EV volumes at all-time records, taking overall EV penetration to about 12.7% from 9.6% a year ago, according to FADA.

Sai Giridhar, Vice President, FADA said, “July’26 has etched itself into Indian Auto Retail history — for the first time on record, every single category posted its best-ever July, with Two-Wheelers, Three-Wheelers, Commercial Vehicles, Passenger Vehicles, Tractors and Wheeled Construction Equipment all at all-time July highs.”

“Dealers attribute this momentum to GST 2.0-led affordability, ease of retail finance and favourable festival timing on a July’25 base that had declined nearly 4%, alongside a quiet inflection that deserves the industry’s attention: alternative fuels are now within striking distance of petrol in the Passenger Vehicle market,” he said.

“With FY’27’s first four months EV retail sales up 18.27%, the runway into the festive season is firmly intact,” he added. 

Two-Wheeler retails stood at 18,18,289 units, up 28.25% YoY — the best July ever and the first time 2W has crossed the 18-lakh mark in a July — though 1.26% lower MoM. 

On a YoY basis Rural sales were up 28.59% and edged past Urban which was up 27.86%.

Commercial Vehicle retails at 99,666 units grew 24.04% YoY — the highest July ever, rural again led decisively, growing 29.37% YoY against Urban’s 19.36%.

CV EV share at 3.57% marked another all-time high against 1.65% a year ago, according to FADA.

Passenger Vehicle retails came in at 4,16,555 units, up 19.13% YoY — the first time PV has crossed the 4-lakh mark in a July — though 1.68% lower MoM. 

The Rural PV sales grew 24.72% YoY against Urban’s 15.76%. 

Three-Wheelers at 1,33,778 units grew 16.16% YoY, Tractors at 1,17,349 units surged 28.10% YoY and Wheeled Construction Equipment at 5,501 units rose 46.07% YoY on infrastructure momentum.