September 2026 Passenger Vehicle Sales Hit Record High
Passenger vehicle retail sales in India reached a record 4.27 lakh units in September 2026, posting 32% year-on-year growth.
Passenger vehicle sales reached 4,27,213 units in September 2026. This represented a 32.10% year-on-year surge from September 2025 and a 6.17% increase from August 2026.
Year-to-date passenger vehicle sales were 25,44,187 units, a 24.48% rise. FADA said: "passenger vehicle sales have also improved strongly on a year-to-date basis with sales at 25,44,187 units".
Urban and Rural Momentum
Demand was broad-based across the country. Urban passenger vehicle sales grew 32.11% year-on-year. Rural sales grew at a nearly identical pace of 32.09%.
Market Leadership and Top Brands
Maruti Suzuki solidified its lead with 1,69,132 units sold, capturing a 39.59% market share. The month's most intense competition was for second place, where Mahindra edged past Tata Motors by a mere 89 units.
| Brand | Units Sold (Sept 2026) | Market Share |
|---|---|---|
| Maruti Suzuki | 1,69,132 | 39.59% |
| Mahindra | 57,343 | Not specified |
| Tata Motors | 57,254 | 13.40% |
| Hyundai | 50,201 | Not specified |
| Toyota Kirloskar Motor | 28,050 | 6.57% |
| Kia India | 26,663 | 6.24% |
Tata Motors' market share slipped from 13.76% in September 2025. Other notable performers included Hyundai, which sold 50,201 units, and Kia India, which saw sales rise to 26,663 units.
Fuel Mix and EV Trends
The fuel-wise sales mix showed continued diversification. FADA said: "The fuelwise share saw petrol/ethanol vehicles commanding a 41.27% share while diesel held a 17.74% share". CNG and LPG vehicles held a 23.11% share.
Hybrid vehicles accounted for 9.44% of passenger vehicle sales. Electric vehicles (EVs) held an 8.45% share within the segment, contributing to an industry-wide EV penetration rate of approximately 13% across all vehicle categories. Total EV retail sales across two-wheelers, three-wheelers, cars, and commercial vehicles reached an all-time monthly high of around 3.34 lakh units.
Broader Industry Performance
The record passenger vehicle performance was part of an industry-wide surge. Total automobile retail registrations rose 31.82% year-on-year to 25,36,920 units. Two-wheeler sales hit their best-ever September at 17,90,188 units, a 33.08% increase. Commercial vehicle sales crossed one lakh units for the first time in September, rising 37.62% to 1,03,557 units. Three-wheeler sales also achieved a record September, increasing 22.25% to 1,32,570 units, with EVs making up 64.90% of that segment.
FADA President Sai Giridhar noted the strong headline growth was partly influenced by a distorted base, as purchases were deferred in September 2025 ahead of GST 2.0 implementation. He warned that further price increases could erode gains from the tax change and that affordability would be critical through the festive season.
Dealer sentiment remains bullish for the coming months. A survey found 75.57% of dealers anticipate increased sales in October 2026, with 78.28% forecasting growth through December.
