TL;DR
Indian auto retail sales in September 2026 reached an all-time high, jumping 31.82% year-on-year, driven by festive demand and strong performance across most vehicle segments, including a record for EV sales.
India's automotive retail sector experienced its strongest September performance ever in 2026, with total vehicle sales surging by 31.82% year-on-year to reach a record 25,36,920 units. This significant growth was primarily fueled by robust festive demand and a favorable low base effect from the previous year, which was impacted by purchase deferments ahead of GST 2.0 implementation.
The Federation of Automobile Dealers Associations (FADA) reported that five out of six vehicle categories achieved their best-ever September sales. Two-wheeler sales rose by 33.08%, passenger vehicle sales by 32.10%, and commercial vehicles saw a 37.62% increase, crossing the one-lakh mark for the first time in September. Electric vehicle retail sales across all categories also hit an all-time monthly high of approximately 3.34 lakh units, pushing overall EV penetration to about 13%.
