India’s Auto Retail Hits Record September Sales of 25.37 Lakh Units

India’s automobile retail sales reached a September record of 25.37 lakh units, with strong demand across vehicle segments helping the industry close its best-ever first half of a financial year, the Federation of Automobile Dealers Associations (FADA) said.

Sales rose 31.82% year-on-year and 4.69% over August. However, FADA cautioned that the annual jump was amplified by unusually weak sales in September 2025, when buyers postponed purchases ahead of the rollout of GST 2.0.

Five of the six vehicle categories recorded their highest-ever September sales. Total retail for the first half of FY27 reached 1.55 crore units, up 20.77% from a year earlier.

RECORD SALES, WITH A BASE-EFFECT CAVEAT

FADA described September’s annual growth as “the most base-distorted print of the year”. Buyers had deferred purchases in the week before GST 2.0 took effect on September 22, 2025, depressing the comparison base.

President Sai Giridhar said the record September volumes, sequential growth and first-half performance offered a clearer picture of demand.

Even excluding September, retail sales in the first five months of FY27 grew about 17%, which he described as “the truer underlying run-rate”.

TWO-WHEELERS LEAD, COMMERCIAL VEHICLES CROSS A MILESTONE

Two-wheelers accounted for the largest share of sales, with retail rising 33.08% year-on-year to 17,90,188 units. Passenger vehicle sales increased 32.10% to 4,27,213 units.

Commercial vehicle retail grew 37.62% to 1,03,557 units, crossing the one-lakh mark for September for the first time.

Three-wheeler sales rose 22.25% to 1,32,570 units, while wheeled construction equipment sales increased 38% to 6,486 units.

Tractors were the only category to register a month-on-month decline. Sales fell 12.58% from August to 76,906 units, although they remained 13.75% higher year-on-year. FADA attributed the sequential weakness to the later festive calendar and patchy monsoon conditions.

EV RETAIL REACHES A MONTHLY HIGH

Electric vehicle sales climbed to an all-time monthly high of about 3.34 lakh units, accounting for roughly 13% of overall automobile retail.

Electric two-wheelers represented 11.58% of total two-wheeler sales during September.

FADA’s October outlook remains “cautiously optimistic”, with 75.57% of dealers expecting sales growth. Demand is expected to strengthen from mid-month during Navratri and Dussehra.

However, comparisons will become tougher against last year’s GST-led festive surge.

For October–December, 78.28% of dealers expect growth, while 49.5% have raised their full-year FY27 outlook following the record first half.

FADA said converting festive interest into purchases and maintaining affordability would be essential to sustaining momentum. Rising vehicle prices, it cautioned, could erode the benefits consumers received from GST 2.0.

With inputs from ANI