Record September for Vehicle Sales: 25.37 Lakh Sold, Car Retail Up 32%, and Why October Is the Real Test

• Total retail: 25.37 lakh vehicles, up 31.82%.
• Cars and SUVs (passenger vehicles): 4,27,213, up 32.1%, the best September on record.
• Two-wheelers: 17,90,188, up 33.1%.
• Commercial vehicles: 1,03,557, up 37.6%, above one lakh in a September for the first time.
• Electric cars: retail up about 95%.
• The catch: last September, buyers held off until GST 2.0 cut taxes, so this year's comparison is flattered.

The numbers that matter

These are retail sales, meaning vehicles registered by customers, not cars shipped from factories to dealers. FADA collects them from the government's Vahan registration system.

• Two-wheelers: 17,90,188 vehicles, +33.1%
• Passenger vehicles: 4,27,213 vehicles, +32.1%
• Commercial vehicles: 1,03,557 vehicles, +37.6%
• Three-wheelers: +22.3%
• Tractors: +13.8%
• All vehicles: september 2026 25,36,920; growth vs sept 2025 +31.8%

Car sales grew almost equally in cities (32.1%) and villages (32.1%), which suggests demand is broad-based rather than limited to big metros.

Why last year's base matters

On September 22, 2025, the government's GST 2.0 reforms cut taxes on many vehicles. Expecting lower prices, many buyers delayed purchases until late September 2025 or October. That left September 2025 unusually weak, so almost any normal month this year would look like a big jump.

FADA itself says the April to September period is a fairer guide. Over those six months, car retail grew about 24.5%, to 25.44 lakh units. That is still strong growth, just not as dramatic as the September figure.

Who is selling the most cars

According to FADA's data, as reported by Autocar Professional, the top four carmakers in September were:

1. Maruti Suzuki: 1,69,132 cars, about 39.6% of the market
2. Mahindra & Mahindra: 57,343, about 13.4%
3. Tata Motors: 57,254, about 13.4%
4. Hyundai: 50,201, about 11.8%

Mahindra and Tata were separated by fewer than 100 cars, a sign of how close the race for second place has become.

The quiet shift away from petrol

The fuel mix is changing fast. Petrol, including ethanol blends, made up just over 41% of car sales in September. CNG and LPG cars took about 23%, hybrids about 9%, and electric cars about 8.5%, up from under 6% a year earlier. Across all EV types, FADA counted about 3.34 lakh electric vehicles sold in the month.

High petrol prices, now above ₹100 a litre in most big cities, are one reason buyers are looking at alternatives. Read our report on why fuel prices have not moved despite costlier crude.

Warning sign: stock is piling up

Dealers are carrying a lot of unsold cars. FADA says passenger-vehicle inventory rose to about 43 to 45 days of sales by the end of September, about double its recommended level of 21 days, and 60% of dealers reported higher stock ahead of the festivals. High inventory ties up dealers' money and often leads to bigger discounts.

Why October is the real test

October covers the heart of the festive season: Navratri, Dussehra and the run-up to Dhanteras and Diwali. Last October was itself a record, as buyers who had waited for GST cuts rushed in; FADA reported a 34% jump in retail during Navratri 2025. That makes October 2026 a tough comparison. Dealers expect pending bookings to convert during Navratri and Dussehra, but price increases announced for October and patchy rainfall in some regions could slow things down.

What it means for buyers

• Look for festive deals: high dealer stock usually means room to negotiate.
• Compare fuel types: CNG, hybrid and electric models can save money if you drive a lot, though they may cost more upfront.
• Mind your loan: car-loan rates may rise after the RBI's recent hike, so compare lenders.

Related reading

• Crude Oil Above $100: Why Petrol and Diesel Prices Haven't Moved
• The Next Generation of Batteries: Solid-State and Sodium-Ion
• GST Collections Rise 14.7% in September as GST 2.0 Completes a Year