India Records Best-Ever September for Vehicle Retail Sales, but Dealers Urge Caution on Growth Figures
Dealers registered 25,36,920 vehicles in September 2026, up 31.82 per cent on a year earlier, according to FADA. The dealers body said the growth looks larger because September 2025 was unusually weak.
Vehicle retail sales in India recorded their best-ever September last month, according to data from the Federation of Automobile Dealers Associations (FADA) as reported by Autocar India and Motor India. Dealers registered 25,36,920 vehicles in September 2026, which is 31.82 per cent higher than a year earlier and 4.69 per cent higher than in August.
FADA president Sai Giridhar urged readers to treat the headline growth rate with care. He described the 31.82 per cent figure as "the most base-distorted print of the year", because many buyers had put off purchases in September 2025 ahead of the revised GST rates, which took effect on 22 September 2025. He pointed instead to the month-on-month rise and to underlying growth of about 17 per cent over the first five months of the 2026-27 financial year as clearer signals. For April to September, FADA data showed 1,55,12,319 vehicles sold, up 20.77 per cent and the strongest first half of a financial year on record.
Every major category except tractors posted its best September. Two-wheelers sold 17,90,188 units, up 33.08 per cent. Passenger vehicles reached 4,27,213 units, up 32.10 per cent, with urban and rural markets growing at almost the same pace. Commercial vehicles crossed one lakh units in a September for the first time, at 1,03,557, while three-wheelers totalled 1,32,570 units, nearly 65 per cent of them electric. Tractors were the soft spot, at 76,906 units, up 13.75 per cent on the year but down 12.58 per cent on the month, which FADA linked to patchy monsoon rain and a later festive calendar.
Among carmakers, Maruti Suzuki led with 1,69,132 units and a 39.59 per cent share, down from 40.21 per cent a year earlier, according to the figures compiled by Autocar India. Mahindra moved into second place, ahead of Tata by just 89 units. Petrol and ethanol-blend cars held 41.27 per cent of passenger vehicle sales, narrowly ahead of CNG, hybrid and electric models combined at about 41 per cent. Electric vehicles across all segments hit a monthly high of roughly 3.34 lakh units, taking overall EV penetration to about 13 per cent, FADA said. The passenger vehicle data excludes Telangana.
FADA also flagged a build-up of stock. Passenger vehicle inventory rose by about five days to roughly 43 to 45 days, well above the 21 days the body considers healthy, as dealers stocked up for the festive season. Dealers named rising vehicle prices, which could erode the benefit of lower GST, as the biggest risk for the coming quarter.
Looking ahead, 75.57 per cent of dealers surveyed expect growth in October, 19.46 per cent expect a flat month and 4.98 per cent expect a decline, with demand held back during Pitru Paksha expected to shift to Navratri and Dussehra. FADA described the mood as cautiously optimistic. Autocar India noted that October 2025 saw more than 4,66,800 cars sold, so this October will be measured against a higher base than September was.
