Auto Industry Total Retail Sales Up 26% At 25,91,138 Units In July, Says FADA

Total automobile retail sales in India grew by 25.89% year-on-year to 25,91,138 units in July, continuing with the demand momentum that set in after rationalisation of GST in the latter part of last year, the Federation of Automobile Dealers Associations said on Thursday.

In July last year, total automobile retail sales in India were at 20,58,325 units, Federation of Automobile Dealers Associations (FADA) said in a statement. Passenger vehicles (PV) retail sales were at 4,16,555 units last month as compared to 3,49,674 units in July 2025, a growth of 19.13%, it added. Sales of two-wheelers were at 18,18,289 units in July this year compared to 14,17,767 units in the same month a year ago, up 28.25%, it added.

Three-wheeler sales stood at 1,33,778 units last month as compared to 1,15,166 units in July 2025, a growth of 16.16%, FADA said.

Commercial vehicles also witnessed a 24.04% rise in retail sales at 99,666 units last month as compared to 80,348 units in July 2025, it added.

FADA Vice President Sai Giridhar said it was for the first time that every single category -- two-wheelers, three-wheelers, commercial vehicles, passenger vehicles, tractors and wheeled construction equipment -- posted best-ever July sales.

"Dealers attribute this momentum to GST 2.0-led affordability, ease of retail finance and favourable festival timing on a July 2025 base that had declined nearly 4%...," he said.

Besides, Giridhar said alternative fuels are now within striking distance of petrol in the passenger vehicle market -- a quiet inflection that deserves the industry's attention.

Alternative-fuel share (CNG - 24.67%, Hybrid 8.02%, EV 7.9%) reached 40.59%, just 1.09 percentage points behind petrol's 41.68%,” a gap that stood at 13.21 points only a year ago '” setting up a potential historic crossover in the coming months, he added.

In the two-wheeler segment, Giridhar said share of electric two-wheelers touched a record 11.24% against 7.65% a year ago, while short supplies of high-demand models led to pending bookings.

Commenting on the overall electric vehicle (EV) retail sales, he said,"Total EV retails touched 3,27,901 units 'the highest for any month in history' with 2W and CV EV volumes at all-time records, taking overall EV penetration to about 12.7% from 9.6% a year ago." With the first four months of FY27 witnessing 8.27% growth, the runway into the festive season is firmly intact, he added.

On the outlook for August, FADA said its members were optimistic with 74.30% of dealers expecting growth, 22.9% a flat market and only 2.8% foresee de-growth,” a marked step-up from the 51.24% who expected growth heading into July.

For August, September and October, FADA said dealer confidence is the strongest in recent history with 87.85% of dealers expecting growth, up sharply from 66.17% last month, with only 8.88% expecting a flat market and just 3.27% de-growth.

Overall, FADA said the next three months appear "decisively constructive" with the monsoon's August behaviour and festive conversion in showrooms the key monitorables.