<div id="readability-page-1"><div id="parent_top_div">India's automobile retail sales witnessed its best ever year in FY26 with five of six vehicle categories posting record annual sales pushing the overall auto sales closer to 30 million mark up 13 per cent versus FY25. The stellar show was mainly owing to the GST 2.0 boost, said data shared by the Federation of Automobile Dealers Associations (Fada) on Monday. Passenger Vehicles crossed the 4.7-million mark for the first time moving up by 13 per cent, two-wheelers reclaimed their pre-Covid peak, retailing over 21.4 million units and growing 13.4 per cent, commercial vehicles recorded best ever figures and above the 1-million mark for the first time at 11.74 per cent growth, and three-wheelers set their third consecutive annual record at 11.68 per cent growth. Tractors became the year’s standout performer, crossing 1 million retail units for the first time in history at 18.95 per cent growth. Construction Equipment was the sole exception, declining 11.70 per cent as project-level delays and a high base weighed on volumes.How did India’s auto retail sales perform in FY26? The better show of all these categories resulted in delivering an all-time high auto retail sales of 29.6 million, up 13.3 per cent. &#34;This is not just a number — it represents the industry approaching the 3-crore mark, a milestone that would have seemed distant just two years ago. What makes this year particularly significant is that the growth was structurally sound, underpinned by improving affordability, widening mobility demand across urban and rural India, and a diversifying powertrain mix,&#34; said C S Vigneshwar, Fada president. The industry body is expecting double-digit growth. What drove the turnaround in auto sales during the year? The year, however, was not linear. The first five months — April through August — were a period of measured momentum, with monthly growth ranging between 2 per cent and 5 per cent as the market navigated residual caution from the previous year’s sluggish inventory cycle, selective financing constraints, and consumer wait-and-watch behaviour in anticipation of policy clarity. The turning point arrived in September with the implementation of GST 2.0. &#34;The rate rationalisation — which meaningfully reduced the effective tax burden on mass-segment two-wheelers, small cars, three-wheelers, and select commercial categories — improved real affordability at a time when the consumer was already positioned to respond,&#34; Vigneshwar said. From September onwards, the industry witnessed a clear inflection: the festive convergence of Navratri and Diwali in October delivered an all-time record monthly retail of over 4 million units, and the momentum carried through the remainder of the year. January, February, and March 2026 each registered strong double-digit Y-o-Y growth, validating that the upshift was not merely festive but structural. How did EV adoption and powertrain mix evolve in FY26? The powertrain transition deepened through the year. Electric vehicle share improved in every major category — two wheeler EV rose to 6.54 per cent, passenger vehicle EV rose to 4.25 per cent, and commercial vehicle EV nearly doubled to 1.83 per cent. CNG strengthened its foothold in PVs at 21.98 per cent and in CVs at 11.79 per cent. The total EV retail for the year stood at 2.45 million units, a 24.63 per cent expansion, signalling that the transition is no longer directional but substantive. What role did rural demand play in auto sales growth? On the demand-side, rural India continued to narrow the gap with urban markets. For FY26, total rural retail grew 13.05 per cent against 13.62 per cent in urban — a near-parity that reflects the expanding aspirational footprint of auto retail in the hinterland, aided by better rural incomes, improving road connectivity, and increasing last-mile mobility needs. Within PVs, rural demand outpaced urban meaningfully at 17.12 per cent versus 10.43 per cent. </div></div>

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India's automobile retail sales reached a record high in FY26, nearing 30 million units, a 13% increase from FY25, driven by GST 2.0. Passenger vehicles surpassed 4.7 million, two-wheelers over 21.4 million, and commercial vehicles exceeded 1 million for the first time. Tractors also performed well, crossing 1 million units. The growth was supported by improved affordability and rural demand, with electric vehicle sales rising significantly. The industry anticipates continued double-digit growth, reflecting a structural shift in consumer behavior and market dynamics.

Auto retail sales scale new peak in FY26, inch closer to 30 mn units