FADA Releases Sep’26 Vehicle Retail Data

06th October’26, Mumbai, BHARAT: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for Sep'26.

Sep’26 Auto Retail

Reflecting on September 2026 Auto Retail performance, FADA President Mr. Sai Giridhar said: “September’26 was the best-ever September in Indian Auto Retail, with the industry registering 25,36,920 units, up 31.82% YoY and 4.69% MoM. I would, however, urge that this headline be read with discipline: the 31.82% is the most base-distorted print of the year — a mirror of last September, when buyers deferred purchases in the week before GST 2.0 took effect on 22 September 2025. The cleaner signals are three. It was the best-ever September across five of our six categories and, with it, the best-ever first half of any financial year at 1,55,12,319 units (+20.77%); retail rose 4.69% over August; and even setting the distorted September aside, FY’27’s first five months grew about 17%, which is the truer underlying run-rate.

Category-wise, Two-Wheelers grew 33.08%, Passenger Vehicles 32.10%, Commercial Vehicles 37.62%, Three-Wheelers 22.25% and Tractors 13.75%, while Wheeled Construction Equipment rose 38.00%. The real year-on-year test now lies in October, which laps last year’s GST-fuelled festive surge.

Two-Wheeler retails stood at 17,90,188 units, up 33.08% YoY and 4.41% MoM — the best-ever September, now 15.3?ove the pre-Covid September peak of 2018. Growth was even across geographies on a yearly basis (Rural +33.11%, Urban +33.06%), but the sequential festive pickup was Urban-led (+5.29% MoM against Rural’s +3.62%) as the metros re-engaged ahead of the season. Dealers cited festive buying in the first half of the month, steady rural and semi-urban demand, a pull towards premium motorcycles and accelerating EV adoption — 2W EV share touched 11.58% — tempered by Shraadh-related deferment in the closing week and supply shortfalls in fast-moving models.

Commercial Vehicle retails crossed the one-lakh mark in a September for the first time, at 1,03,557 units, up 37.62% YoY and 14.09% MoM — the best-ever September. Rural (+40.44% YoY) once again outpaced Urban (+35.15%), and HCVs led with 46.22% YoY growth and a sharp 21.28% MoM gain. Dealers attributed the strength to continuing GST 2.0 and replacement demand, infrastructure and mining activity with bulk fleet purchases for steel and cement movement, higher rural incomes, buying ahead of the October price increase and the usual half-year-close spike.

Passenger Vehicle retails were the best-ever September at 4,27,213 units, up 32.10% YoY and 6.17% MoM, with Urban and Rural growing almost in lockstep (+32.11% and +32.09% YoY). The fuel mix offered the month’s most watched signal: after alternative fuels overtook petrol for the first time in August, September saw the two settle into a near dead-heat, with petrol nudging marginally back ahead at 41.27% against alternative fuels’ 41.00% (CNG 23.11%, Hybrid 9.44%, EV 8.45%). The August crossover was therefore an inflection, not a decisive flip — petrol and alternative fuels are now effectively at parity, trading the lead month to month, even as EV share rose to a fresh high and CNG eased. On the channel side, PV inventory rose by a further 5 days over August-end to around 43–45 days — well above FADA’s recommended 21-day benchmark, with 60% of PV dealers reporting higher stock due to upcoming festivals.

Three-Wheelers at 1,32,570 units (+22.25% YoY) recorded their best-ever September with EV penetration at 64.90%; Tractors at 76,906 units grew 13.75% YoY but fell 12.58% MoM, the one soft spot, on a monsoon that failed in parts and a festive calendar that this year sits later. Wheeled Construction Equipment rose 38% to 6,486 units. Total EV retails across categories reached an all-time monthly high of about 3.34 lakh units, taking overall EV penetration to roughly 13%.

One year on from GST 2.0, affordability remains the single engine of this cycle — and dealers now flag further price increases eroding that very affordability as their foremost risk for the quarter ahead. Protecting the GST gain is, to our mind, the key to converting the festive season into durable growth.”

Near-Term Outlook (October’26)

Looking ahead to October’26, dealer optimism firms: 75.57% of dealers expect growth, 19.46?lat market and 4.98?-growth — a step up from the 67.09% who expected growth heading into September. Dealers expect October to deliver the festive pick-up that September deferred: with Navratri (11–20 October) and Dussehra, demand held back during Pitru Paksha should convert into a concentrated burst of deliveries from mid-month, even if the first ten days stay quiet. Booking pipelines are already building for 63% of dealers. Importantly, with the GST 2.0 anniversary now behind us, October will be the first month to offer a clean, like-for-like year-on-year comparison.

Two-Wheelers should see stronger booking-to-retail conversion on auspicious days, supported by rural cashflows, easier finance and rising EV interest; Passenger Vehicles expect pending bookings to convert through Navratri and Dussehra, aided by fresh launches and festive schemes; and Commercial Vehicles should stay firm on freight, infrastructure and a healthy enquiry pipeline. The watch-outs are a high October base from last year’s GST surge, OEM supply of fast-moving models, the October price increases, and sentiment in rainfall-deficient pockets.

Overall, the outlook for October’26 appears Cautiously Optimistic — with festive conversion on auspicious days the key swing factor.

Next 3 Months Outlook (October-November-December’26)

For the October-November-December’26 period, 78.28% of dealers expect growth, 17.65?lat market and 4.07?-growth. The festive heart of the year sits in this window — Navratri and Dussehra in October, Dhanteras and Diwali in early November, followed by the wedding season and year-end buying. Conviction has strengthened after the first half: 49.5% of dealers have revised their FY’27 outlook upward, against just 16% downward.

FADA would, however, read the quarter for what it is. October–December 2025 was the first full quarter after GST 2.0 and absorbed considerable pent-up demand — a demanding base — so the quarter’s real signal will be festive conversion in the showroom, not year-on-year optics. The decisive variable is affordability: a substantial part of the GST 2.0 benefit still sits with the consumer, but successive input-cost-led price increases are narrowing that cushion, and dealers rightly flag this as their top risk. Alongside this, OEM dispatch discipline matters, with PV inventory already at 43–45 days. The structural anchors remain supportive — rural consumption, infrastructure-led goods movement, a strong launch calendar and steadily deepening electrification — each a thread of the broader India Growth Story.

Overall, the next three months appear Cautiously Optimistic — strong festive expectations tempered by a demanding base, with festive conversion, affordability and inventory discipline the key monitorables.

About FADA India

Founded in 1964, Federation of Automobile Dealers Associations (FADA), is the apex national body of Automobile Retail Industry in India engaged in the sale, service and spares of 2 & 3 Wheelers, Passenger Cars, UVs, Commercial Vehicles (including buses and trucks) and Tractors. FADA India represents over 15,000 Automobile Dealerships having over 30,000 dealership outlets including multiple Associations of Automobile Dealers at the Regional, State and City levels representing the entire Auto Retail Industry. Together we employ ~5 million people at dealerships and service centres.

FADA India, at the same time also actively networks with the Industries and the authorities, both at the Central & State levels to provide its inputs and suggestions on the Auto Policy, Taxation, Vehicle Registration Procedure, Road Safety and Clean Environment, etc. to sustain the growth of the Automobile Retail Trade in India.

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