India Auto Retail Hits Record September High
Vehicle registrations surged 31.82% year-on-year to 25.37 lakh units, with strong festive demand lifting most major segments.
India’s automobile retail market recorded its best-ever September in 2026, with total vehicle registrations reaching 25,36,920 units, according to Federation of Automobile Dealers Associations (FADA) data. Retail volumes rose 31.82% year-on-year and 4.69% month-on-month, reflecting strong demand during the festive season.
Two-wheelers remained the largest contributor, with 17,90,188 units registered during the month. The segment grew 33.08% year-on-year and 4.41% from August, marking its strongest September on record.
Passenger vehicle registrations also reached a record September level at 4,27,213 units, rising 32.10% year-on-year and 6.17% month-on-month. Strong demand for SUVs and utility vehicles contributed to the segment’s performance.
Commercial vehicle retail crossed the one-lakh mark for the first time in a September, reaching 1,03,557 units. Registrations increased 37.62% year-on-year and 14.09% month-on-month, making commercial vehicles one of the strongest-performing major categories.
Three-wheeler registrations rose 22.25% year-on-year to 1,32,570 units and increased 8.41% from August. Electric vehicles accounted for around 65% of three-wheeler sales, highlighting the segment’s continuing shift towards electrification.
Tractor sales were the main exception to the broader monthly improvement. Registrations stood at 76,906 units, up 13.75% year-on-year but down 12.58% from August. FADA attributed the sequential decline partly to the late festive season and patchy monsoon conditions.
Wheeled construction equipment also recorded strong growth, with 6,486 units registered in September, up 38% year-on-year and 25.55% month-on-month. The increase points to a broad-based improvement across several areas of the automotive and equipment market.
FADA cautioned that the headline 31.82% annual growth should be viewed in the context of a favourable base in the previous year. However, the month-on-month increase and record performances across several categories indicate that demand remained firm. The key test will be whether this momentum continues through the remainder of the festive season.