‘Best ever September’: Auto retail sales surge 32% year-on-year

The Indian automobile industry saw a 32% year-on-year surge in retail sales in September 2026, marking the best September on record. Growth was driven by festive demand, premium motorcycle sales, and increasing EV adoption.
Why it matters
The data serves as a key economic indicator for consumer spending and the shifting energy landscape in the Indian automotive market.
The Indian automobile industry in September 2026 registered retail sales of 25,36,920 units, up 31.82% year-on year (YoY) and a growth of 4.69% month-on-month (MoM), according to data released by the Federation of Automobile Dealers Association (FADA) on Tuesday (October 6, 2026).
Two-Wheeler retail sales stood at 17,90,188 units, up 33.08% YoY and 4.41% MoM — the best-ever September, now 15.3% above the pre-Covid September peak of 2018.
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, for the surge.Two wheeler EV share touched 11.58%.
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.
Passenger Vehicle retails at 4,27,213 units, grew 32.10% YoY and 6.17% MoM.
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