Automobile retail sales witnessed their best-ever performance in Financial Year 2026, with five of the six vehicle categories posting record annual sales. Overall auto sales moved closer to the 30-million mark, registering a 13 per cent increase over the previous financial year.
The stellar performance was mainly attributed to the GST 2.0 boost, according to data shared by the Federation of Automobile Dealers Associations (FADA).
Passenger vehicles crossed the 4.7-million mark for the first time, growing by 13 per cent. Two-wheelers reclaimed their pre-Covid peak, retailing over 21.4 million units and recording a growth of 13.4 per cent.
Commercial vehicles achieved their best-ever figures, surpassing the 1-million mark for the first time with 11.74 per cent growth, while three-wheelers registered their third consecutive annual record with 11.68 per cent growth, the data added.
FADA stated that tractors emerged as the standout performer of the year, crossing 1 million retail units for the first time in history, with a growth of 18.95 per cent. Construction equipment was the sole exception, declining by 11.70 per cent due to project-level delays and a high base effect impacting volumes.
According to FADA’s detailed analysis, during the first five months of the fiscal year, monthly growth ranged between 2 per cent and 5 per cent.
Growth witnessed a significant uptick following the implementation of GST 2.0 in September 2025.
The industry saw a clear inflection from September onwards. The festive convergence of Navratri and Diwali in October resulted in an all-time high monthly retail figure of over 4 million units.
FADA noted that January, February, and March 2026 each recorded strong double-digit year-on-year growth, indicating that the uptrend was not merely festive but structural.
Electric vehicle (EV) penetration also improved across all major categories. As per FADA, the share of electric two-wheelers rose to 6.54 per cent, passenger vehicle EVs increased to 4.25 per cent, and commercial vehicle EVs nearly doubled to 1.83 per cent.