Federation of Automobile Dealers Associations (FADA) has said that the Automobile retail sales in India increased by 17.51% to a record 24,23,201 units in August 2026 from 20,62,038 units in the same period last year. FADA has attributed the growth in retail sales to continued momentum of GST 2.0 and noted that retail sales in August grew despite the seasonal monsoon lull and the delayed onset of the festive calendar. It also highlighted that Passenger Vehicle (PV) alternative-fuel share (CNG + Hybrid + EV) reached 41.95%, overtaking petrol’s 40.85% share for the first time in India's history.
The PV retail sales have recorded a growth of 16.14% at 4,02,398 units in August 2026 as compared with 3,46,468 units in August 2025. Further, two-wheeler sales were up 19.69% to 17,14,610 units in August this year as compared to 14,32,537 units in the same month last year. Besides, Commercial vehicles witnessed a 14.45% increase in retail sales at 90,769 units in August 2026 as compared to 79,306 units in 2025. On tractors sales, FADA said that a widening monsoon deficit - around 13% with 14 states short of rain - held tractors sales flat and pulled them 25.03% lower MoM (month-on-month).
Meanwhile, FADA highlighted that every other rural segment outgrew its urban counterpart. Rural PV sales rose 24.99% versus urban's 10.93%; rural commercial vehicle sales rose 16.33%; and rural three-wheeler sales rose 23.95%, even as urban three-wheeler sales fell. For September 2026, FADA noted that dealer sentiment stays constructive but has moderated from July's peak, with 67.09% of dealers expecting growth, 27.35% a flat market and 5.56% de-growth. For the September-October-November 2026 period, 81.62% of dealers expect growth, 17.09% a flat market and just 1.28% de-growth - a strong reading, though moderated from the 87.85% recorded a month ago.
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