The Indian passenger vehicle market recorded its best-ever September in 2026, with 4,27,213 units sold, according to data released by the Federation of Automobile Dealers Associations (FADA). Retail sales grew 32.1 percent year on year.
However, the sharp growth was partly driven by a low base in September 2025, when buyers had delayed purchases in anticipation of price cuts following the introduction of GST 2.0.
One of the biggest changes in the rankings was Mahindra overtaking Tata for second place, with just 89 units separating the two manufacturers.
Top 10 Carmakers in September 2026
|
Carmaker |
Sep 2026 sales |
MoM |
YoY |
Market share |
|---|---|---|---|---|
|
Maruti Suzuki |
1,69,132 |
+2.38% |
+30.05% |
39.59% |
|
Mahindra |
57,343 |
+14.13% |
+38.93% |
13.42% |
|
Tata |
57,254 |
-1.02% |
+28.66% |
13.40% |
|
Hyundai |
50,201 |
+6.84% |
+31.46% |
11.75% |
|
Toyota |
28,050 |
+12.85% |
+21.56% |
6.57% |
|
Kia |
26,663 |
+14.09% |
+45.91% |
6.24% |
|
Skoda Volkswagen Group |
8,479 |
+13.52% |
+13.51% |
1.98% |
|
MG |
6,475 |
+11.95% |
+13.74% |
1.52% |
|
Honda |
5,283 |
+6.34% |
+42.51% |
1.24% |
|
Renault |
3,410 |
+4.12% |
+33.10% |
0.80% |
Note: Telangana RTO data is not included in FADA's retail sales figures.
Maruti Suzuki retains market leadership
Maruti Suzuki remained comfortably ahead of its rivals with 1,69,132 units, up 30.05 percent year on year. Its market share, however, declined from 40.21 percent to 39.59 percent.
The company's sales increased 2.38 percent month on month despite its already high volume base. Maruti sold more cars than the next three manufacturers combined.
Mahindra overtakes Tata for second
Mahindra moved into second place with 57,343 units, narrowly beating Tata by 89 units. Its sales increased 38.93 percent year on year and 14.13 percent month on month.
Mahindra recorded the highest month-on-month growth among the top 10 and increased its market share from 12.76 percent to 13.42 percent.
Tata slipped to third with 57,254 units, although its sales were still up 28.66 percent year on year. It was the only manufacturer in the top 10 to record a month-on-month decline, falling 1.02 percent. Its market share also dropped to 13.40 percent.
Hyundai remains fourth
Hyundai sold 50,201 units, registering 31.46 percent year-on-year and 6.84 percent month-on-month growth. Its market share edged down from 11.81 percent to 11.75 percent. The upcoming Bayon is expected to be Hyundai's key new launch in October.
Kia records fastest YoY growth
Kia was the fastest-growing manufacturer among the top 10, with sales rising 45.91 percent year on year to 26,663 units. The second-generation Seltos continued to be a major contributor, while Kia's market share increased from 5.65 percent to 6.24 percent. The company also recently launched the Sorento.
Honda also recorded strong growth, with sales up 42.51 percent YoY to 5,283 units, while Renault's 33.10 percent increase was supported by the new Duster.
Petrol regains lead over alternative fuels
Petrol cars regained the largest share of retail sales in September, accounting for 41.27 percent, compared with 41 percent for alternative-fuel cars when CNG/LPG, hybrids and EVs are combined.
|
Powertrain |
Sep 2026 |
Aug 2026 |
Sep 2025 |
|---|---|---|---|
|
Petrol/ethanol |
41.27% |
40.85% |
47.18% |
|
Diesel |
17.74% |
17.21% |
17.76% |
|
CNG/LPG |
23.11% |
25.28% |
22.02% |
|
Hybrid |
9.44% |
9.04% |
7.30% |
|
EV |
8.45% |
7.63% |
5.74% |
Hybrid and EV shares increased month on month, while CNG/LPG declined. Despite petrol regaining the lead, the gap between petrol and alternative-fuel powertrains remained narrow.
October Will Provide a Clearer Picture
The September numbers are particularly difficult to compare directly with the previous year because of the weak September 2025 base. FADA president Sai Giridhar said affordability remains critical, with dealers concerned that subsequent price increases could erode the benefit of GST 2.0.
More than 4,66,800 cars were retailed in October 2025, making it the best-ever October for the Indian PV market. With October 2026 therefore facing a much stronger comparison base, the month should provide a cleaner indication of whether the market's growth is sustainable.
FADA's dealer survey remains cautiously optimistic, with 75.57 percent of dealers expecting growth in October, 19.46 percent expecting a flat market and 4.98 percent anticipating a decline.
September's record retail number is significant, but the 32.1 percent YoY growth should not be interpreted in isolation. The unusually weak September 2025 base inflated the comparison, making October a more important month for assessing underlying demand. Mahindra's narrow move ahead of Tata is another key development, while the continued rise in hybrid and EV penetration suggests that the powertrain mix is also gradually changing. With October 2025 having set a particularly high benchmark, the next month's retail data should offer a much clearer picture of the Indian PV market's underlying momentum.