New Delhi, October 6, 2026: The Federation of Automobile Dealers Associations (FADA) reported record-breaking vehicle retail sales for September 2026, with total registrations reaching 25,36,920 units, a 31.82% year-on-year increase and a 4.69% rise over August. This marked the best-ever September and the highest first-half (April–September) performance, with cumulative sales at 1,55,12,319 units, up 20.77% from the previous year.
FADA cautioned that the strong year-on-year growth was influenced by a low base effect, as last September saw pre-GST deferrals, and pointed to the month-on-month growth and record figures as more reliable indicators of sector health.
Category-wise sales performance
Two-wheelers led the segment with 17,90,188 units sold, up 33.08% year-on-year. Passenger vehicles followed at 4,27,213 units, a 32.10% increase, while commercial vehicles saw a 37.62% jump to 1,03,557 units. Three-wheeler sales rose 22.25% to 1,32,570 units, tractors increased 13.75% to 76,906 units, and wheeled construction equipment grew 38% to 6,486 units.
September saw five out of six categories post their best-ever monthly sales, with commercial vehicles crossing the one lakh mark in a September for the first time. Two-wheeler sales are now 15.3% above their 2018 peak.
Fuel mix and EV penetration
Petrol vehicles accounted for 41.27% of sales, slightly ahead of alternative fuels at 41%. Electric vehicle (EV) retails reached an all-time monthly high of approximately 3.34 lakh units, with overall EV penetration at around 13% and two-wheeler EV share at 11.58%. CNG vehicle share eased during the month.
Inventory and dealer outlook
Passenger vehicle inventory increased by about five days over August-end to an estimated 43–45 days, exceeding FADA’s recommended 21-day benchmark. The association noted that 60% of passenger vehicle dealers are holding higher stock levels in anticipation of upcoming festivals.
Looking ahead to October 2026, 75.57% of dealers expect growth, with 19.46% anticipating flat sales and 4.98% expecting a decline, up from 67.09% growth expectations in September. The festive season, including Navratri and Dussehra, is expected to drive sales, with October providing the first clean year-on-year comparison after the GST 2.0 anniversary.
Three-month outlook and sector challenges
For the October–December 2026 quarter, 78.28% of dealers expect growth, and 49.5% have revised their FY27 outlook upward following the record first half. FADA highlighted that the real test will be festive conversion rather than year-on-year comparisons, with affordability and the impact of price hikes being key factors to monitor.
The Federation of Automobile Dealers Associations is the apex body representing India’s automobile retail industry.
Disclaimer: This article is based on a press release provided by the concerned organisation and has been edited for style and clarity with the assistance of AI tools. BusinessFortnight does not verify, endorse, or take responsibility for the claims, figures, or statements made in the original release.
