3 weeks ago
Car retail sales hit record July high; alternative fuels gain
In July, more people in India bought cars and other vehicles than ever before for that month.
Passenger car sales went up by about 19 percent compared with last year.
People in villages and small towns bought even more vehicles than people in big cities.
Cars that run on electricity or other fuels instead of petrol are becoming very popular.
These alternative-fuel cars now make up almost the same share of sales as petrol cars.
Electric vehicles hit a new record, with more than 327,000 sold across all categories.
Motorcycles, three-wheelers and tractors also had their best July ever.
Dealers are a little worried, though, because they have too many unsold cars in stock.
They asked car makers to send fewer vehicles to dealerships.
Most dealers still think the next few months will be good because of festivals like Onam and Raksha Bandhan.
Passenger vehicle retail sales hit a record 4,16,555 units in July, up 19.13% year on year.
CNG, hybrid and electric vehicles accounted for 40.59% of passenger vehicle registrations, nearly matching petrol's 41.68% share.
Total EV registrations hit a record 3,27,901 units, lifting EV penetration to nearly 12.7% from 9.6% a year earlier.
All six vehicle segments posted their highest-ever July volumes, with overall auto retail sales up 25.89% to 25,91,138 units.
FADA flagged passenger vehicle inventory of 33-35 days, above its recommended 21-day benchmark, and urged manufacturers to align dispatches with retail demand.
- Who
- Car buyers across India, the Federation of Automobile Dealers Associations (FADA), and FADA Vice-President Sai Giridhar.
- What
- India's automobile retail sales hit record July highs, with alternative fuels nearly matching petrol's share of passenger vehicle registrations.
- Where
- India, covering both rural and urban markets.
- When
- July 2026.
- Why
- Low borrowing costs, GST 2.0, income tax relief and improving rural demand supported the strong performance.
Key facts
- Passenger vehicle retail sales
- 4,16,555 units (up 19.13% YoY)
- Overall auto retail sales
- 25,91,138 units (up 25.89% YoY)
- Alternative fuel PV registration share
- 40.59%
- Petrol PV registration share
- 41.68%
- Total EV registrations
- 3,27,901 units (record)
- EV penetration
- Nearly 12.7% (up from 9.6% a year earlier)
- Passenger vehicle inventory
- 33-35 days (vs FADA's 21-day benchmark)
- Two-wheeler retail sales
- 18,18,289 units (up 28.25% YoY)
Quotes
Sai Giridhar
FADA Vice‑President
“"The strong momentum is being supported by low borrowing costs, GST 2.0, income tax relief and improving rural demand. While input costs, exchange rate volatility and multiple price hikes have pushed up vehicle prices, the market has largely absorbed the increases, particularly in rural areas where demand has been stronger than urban markets."”
financialexpress.com










