Passenger Vehicle Retail Rises 32.10% In September 2026: FADA

Passenger vehicle retail rose 32.10% year on year to 4,27,213 units in September 2026, according to FADA. Retail increased 6.17% month on month from 4,02,398 units in August.

September was the best-ever month for passenger vehicle retail, with urban and rural markets recording almost identical year-on-year growth. Urban PV retail increased 32.11%, while rural retail rose 32.09%. Month on month, urban retail increased 7.96% compared with 3.47% for rural markets. 

FADA said September’s overall 31.82% industry-wide year-on-year growth needs to be read against a distorted base from September 2025, when purchases were deferred ahead of the GST 2.0 implementation. The association identified the 4.69% month-on-month increase and the record September category performance as cleaner indicators of retail activity. 

Petrol And Alternative Fuels Near Parity

Petrol and alternative-fuel vehicles were almost evenly split in September. Petrol/ethanol accounted for 41.27% of PV retail, while alternative fuels collectively accounted for 41.00%. The latter comprised CNG/LPG at 23.11%, hybrids at 9.44% and EVs at 8.45%. 

EV share increased from 7.63% in August and 5.74% in September 2025. CNG/LPG share declined from 25.28% in August to 23.11% in September, while hybrid share increased from 9.04% to 9.44%. 

Maruti Suzuki recorded 1,69,132 PV retail units and a 39.59% market share in September. Mahindra & Mahindra and Tata Motors followed with 57,343 and 57,254 units, with market shares of 13.42% and 13.40%, respectively. Hyundai recorded 50,201 units and an 11.75% share. 

PV Inventory Rises To 43-45 Days

Passenger vehicle inventory increased by another five days from August-end to around 43-45 days, significantly above FADA’s recommended 21-day benchmark. The association said 60% of PV dealers reported higher stock ahead of the upcoming festivals. 

PV retail for April-September FY2027 stood at 25,44,187 units, up 24.48% from 20,43,813 units during the corresponding period of FY2026. 

FADA expects pending bookings to convert during Navratri and Dussehra, supported by new launches and festive schemes. It identified OEM supply, October price increases, the high year-on-year base and rainfall-deficient areas as factors to monitor.