Automobile retail sales in India rose 31.82 per cent year-on-year to a record 25,36,920 units in September, with five of six vehicle categories registering their highest-ever September sales, according to the Federation of Automobile Dealers Associations (FADA).
Retail sales also increased 4.69 per cent month-on-month in September, taking the first half of FY27 to a record 1,55,12,319 units, up 20.77 per cent from the corresponding period last year.
However, FADA cautioned that the sharp annual growth in September was influenced by a low base in the year-ago period, when many buyers deferred purchases ahead of the implementation of GST 2.0 on September 22, 2025.
FADA termed September’s 31.82 per cent year-on-year growth as the “most base-distorted print of the year”, urging caution while interpreting the headline figure.
Two-wheeler retail sales rose 33.08 per cent year-on-year to 17,90,188 units, while passenger vehicle sales increased 32.10 per cent to 4,27,213 units.
Commercial vehicle sales recorded growth of 37.62 per cent, reaching 1,03,557 units and crossing the one-lakh mark in September for the first time.
Three-wheeler sales increased 22.25 per cent to 1,32,570 units, while wheeled construction equipment sales rose 38 per cent to 6,486 units.
Tractor sales were the only major category to register a month-on-month decline, falling 12.58 per cent in September. However, tractor sales remained 13.75 per cent higher year-on-year at 76,906 units.
FADA attributed the sequential decline in tractor sales to the later festive calendar and uneven monsoon conditions.
FADA President Sai Giridhar said September marked the industry’s best-ever September but cautioned against relying solely on the headline annual growth figure.
He said the stronger underlying indicators included record September sales in five of the six categories, the best-ever first half of any financial year, and a 4.69 per cent increase in retail sales over August.
The data also showed continued momentum in electric vehicle sales, with total EV retail reaching an all-time monthly high of around 3.34 lakh units. Overall EV penetration stood at approximately 13 per cent, while electric two-wheelers accounted for 11.58 per cent of total two-wheeler sales.
Looking ahead, the industry remains positive about the festive season. Around 75.57 per cent of dealers expect sales to grow in October, with festive demand expected to gain momentum from the middle of the month during Navratri and Dussehra.
FADA has described the October outlook as “Cautiously Optimistic”, while noting that the high base created by last year’s GST-led festive surge could influence year-on-year comparisons.
For the October-December quarter, 78.28 per cent of dealers expect sales to grow, while 49.5 per cent have raised their FY27 outlook following the record first half.
FADA said the conversion of festive demand and vehicle affordability will remain key to sustaining the industry’s growth, particularly as rising vehicle prices could limit the benefits of GST 2.0 for consumers.