Passenger vehicle retail sales in India rose 16.14 percent year on year to 4,02,398 units in August 2026, according to FADA. The segment recorded its best-ever August and crossed the four-lakh-unit mark for the first time in the month. Retail sales were nevertheless 3.40 percent lower than July's 4,16,555 units.
The August 2025 figure stood at 3,46,468 units, meaning the latest month's retail volume was higher by 55,930 units. FADA said the increase was accompanied by stronger rural demand, with rural PV retail rising 24.99 percent YoY, compared with 10.93 percent growth in urban markets.
The rural share of PV retail stood at 39.9 percent in August, compared with 60.1 percent for urban markets. The August strength therefore came alongside a widening contribution from rural markets.
Alternative Fuels Overtake Petrol In PV Retail
The more significant shift in the August PV data was the change in fuel mix. CNG/LPG vehicles accounted for 25.28 percent of PV retail, hybrids for 9.04 percent and EVs for 7.63 percent. Combined, the three alternative-fuel categories accounted for 41.95 percent of PV retail.
Petrol/ethanol vehicles held a 40.85 percent share, putting alternative fuels ahead by 1.10 percentage points. Petrol/ethanol nevertheless remained the largest individual fuel category. Diesel accounted for 17.21 percent.
FADA said the shift was associated with running-cost considerations and continued consumer hesitation around the E20 transition, with buyers moving towards CNG, hybrids and EVs.
Maruti Suzuki Leads PV Retail Market
Maruti Suzuki India remained the largest passenger vehicle OEM in August, recording 1,65,200 units and a 41.05 percent market share. Its retail volume was 22.83 percent higher than the 1,34,494 units recorded in August 2025, while its market share increased from 38.82 percent.
Tata Motors was second with 57,841 units and a 14.37 percent share, followed by Mahindra & Mahindra with 50,245 units and a 12.49 percent share. Hyundai Motor India recorded 46,987 units and an 11.68 percent share.
Toyota Kirloskar Motor recorded 24,856 units and a 6.18 percent share, while Kia India accounted for 23,371 units and a 5.81 percent share. JSW MG Motor India recorded 5,784 units and a 1.44 percent share.
PV Inventory Rises Ahead Of Festive Season
Passenger vehicle inventory at dealerships increased by five days over the July-end level to around 38-40 days, according to FADA. This was above the association's recommended 21-day benchmark, while 56 percent of PV dealers reported higher stock month on month.
FADA said the inventory situation would need to be monitored as festive stocking begins. The association also noted that September PV demand would have to be converted against elevated inventory and a demanding year-on-year comparison base.
September-November PV Demand Outlook
For September, FADA said fresh launches and existing booking pipelines could support PV retail, although elevated inventory and the comparison base remained factors to watch. Across the overall auto retail market, 67.09 percent of dealers expected growth in September.
For September-November, 81.62 percent of dealers expected growth, 17.09 percent expected a flat market and 1.28 percent anticipated de-growth. FADA identified festive demand underperforming expectations, the impact of a below-normal monsoon and further price increases as the principal risks.