India’s automobile retail market recorded its strongest-ever September performance, with total sales rising 31.82% year-on-year to 25,36,920 units, according to data released by the Federation of Automobile Dealers’ Associations (FADA).
The growth was driven by festive purchases during the first half of September, stable demand from rural and semi-urban areas, rising interest in premium motorcycles and faster electric vehicle adoption. Retail sales also grew compared with August, indicating continued momentum in the automobile market.
Passenger vehicles post strong growth
Passenger vehicle sales increased 32.10% year-on-year to 4,27,213 units, marking the segment’s best-ever September. Dealers said consumer interest remained strong despite higher vehicle prices and concerns over inventory levels.
The commercial vehicle segment also crossed an important milestone. Sales rose 37.62% to 1,03,557 units, taking monthly retail numbers above one lakh for the first time in September.
Two-wheelers lead the market
Two-wheeler retail sales climbed 33.08% to around 17.90 lakh units. Rural and semi-urban demand continued to support the segment, while buyers also showed a growing preference for premium motorcycles.
Electric two-wheelers recorded further gains during the month. Their share of total two-wheeler retail sales rose to 11.58%, compared with 8.17% in September last year. Overall electric vehicle sales also reached a monthly record, reflecting the expanding shift towards cleaner mobility.
Festive demand may support October sales
Automobile dealers are expecting another strong month as Navratri, Dussehra and other festive occasions typically encourage vehicle purchases. Some customers who delayed purchases during Pitru Paksha are expected to return to the market during the festive period.
However, high inventory levels remain a concern, particularly in the passenger vehicle segment. Dealers are holding significantly more stock than the industry’s recommended level. Higher vehicle prices and the impact of a relatively low base in the previous year could also influence future growth.
Despite these challenges, FADA said the combination of festive demand, rural recovery, premiumisation and EV adoption has strengthened the outlook for India’s automobile retail market.
