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India Auto Retail Hits Record September Sales
India’s vehicle dealers sold a record number of vehicles in September 2026.
Sales were much higher than in September last year, but that comparison is unusually large because some buyers waited to purchase vehicles in 2025 before a tax change.
Sales also increased compared with August.
Two-wheelers and passenger vehicles made up the biggest parts of the market.
Electric vehicles reached a monthly sales record across all vehicle types.
Many dealers think sales will rise again in October as people shop during the festive season.
Most dealers also said bookings were increasing.
The outlook is positive, but the unusually large year-on-year jump should be treated carefully.
Auto retail sales reached 2,536,920 units in September 2026, up 31.82% year-on-year and 4.69% from August.
FADA cautioned that the annual increase was inflated by unusually weak September 2025 sales before GST 2.0 took effect.
Two-wheeler sales rose 33.08% to 1,790,188 units, while passenger vehicle sales climbed 32.10% to 427,213.
Commercial vehicle sales increased 37.62% to 103,557 units, crossing 100,000 for the first time in September.
For October, 75.57% of dealers expect sales growth; 63% reported rising bookings, while passenger-vehicle stock was reported at 43–45 days.
- Who
- India’s vehicle dealers and buyers; the figures were reported by the Federation of Automobile Dealers Associations (FADA).
- What
- Retail vehicle sales reached 2,536,920 units, a record for September and a 31.82% year-on-year increase.
- Where
- India.
- When
- September 2026; the figures were released on Tuesday.
- Why
- Festive demand and a low comparison base after buyers deferred purchases ahead of GST 2.0 contributed to the increase.
Key facts
- September retail sales
- 2,536,920 vehicles
- Year-on-year change
- Up 31.82%; FADA cautioned that the comparison was distorted by weak September 2025 sales.
- Month-on-month change
- Up 4.69% from August.
- Two-wheelers
- 1,790,188 units, up 33.08% year-on-year.
- Passenger vehicles
- 427,213 units, up 32.10% year-on-year.
- Electric vehicles
- About 334,000 total EV retail sales, a monthly record; overall EV penetration was around 13%.
- Dealer outlook
- 75.57% of dealers expected sales growth in October; 63% reported rising bookings.
- Passenger-vehicle stock
- Reported at 43 to 45 days.
Quotes
Sai Giridhar
President of the Federation of Automobile Dealers Associations (FADA)
“September'26 was the best-ever September in Indian Auto Retail”
thehansindia.com
Sources
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