- India's vehicle retail sales rose 25.89% year-on-year to 25.91 lakh units in July 2026
- Two-wheeler sales grew 28.25% YoY, making up about 70% of total vehicle retail sales
- Passenger vehicle sales hit 4.16 lakh units, up 19.13% YoY, with rural sales growing faster
India's vehicle retail sales rose nearly 26% year-on-year in July, as registrations across all six major segments reached their highest levels for the month, according to data released by the Federation of Automobile Dealers Associations (FADA).
The total vehicle retail sales stood at 25,91,138 units in July 2026, up 25.89% from 20,58,325 units a year earlier. Sales were broadly unchanged from June, declining 0.16%.
Two-Wheelers Segment
Two-wheelers remained the largest segment, accounting for about 70% of total retail sales. Registrations rose 28.25% year-on-year to 18,18,289 units, although they declined 1.26% from the previous month.
Passenger vehicle retail sales increased 19.13% from a year earlier to 4,16,555 units, crossing the four-lakh mark for the first time in a July. Sales fell 1.68% sequentially.
FADA said rural passenger vehicle sales rose 24.72% year-on-year, compared with growth of 15.76% in urban markets. Rural two-wheeler registrations increased 28.59%, slightly ahead of the 27.86% growth recorded in urban areas.
Commercial Vehicles
Commercial vehicle sales climbed 24.04% year-on-year and 4.94% month-on-month to 99,666 units. Light commercial vehicle registrations rose 27.65% from a year earlier to 61,634 units, while medium commercial vehicle sales increased 25% to 9,925 units.
Heavy commercial vehicle registrations grew 16.72% year-on-year and 13% sequentially to 28,070 units.
July Auto Sales
Three-Wheelers Segment
Three-wheeler retail sales rose 16.16% year-on-year and 6.89% from June to 1,33,778 units. Passenger three-wheeler sales increased 31.55% from a year earlier to 76,236 units, while goods three-wheeler registrations jumped 47% to 15,366 units. Passenger e-rickshaw sales, however, declined 12.71% to 34,722 units.
Tractor Sales And Electric Vehicles Sales
Tractor sales increased 28.10% year-on-year and 12.10% sequentially to 1,17,349 units, supported by higher rural demand and improving agricultural activity.
Wheeled construction equipment recorded the fastest growth among the major categories, with sales rising 46.07% from a year earlier to 5,501 units.
Electric vehicle retail sales across categories reached a record 3,27,901 units during the month. Electric vehicles accounted for 11.24% of two-wheeler sales and 65.08% of three-wheeler registrations. In passenger vehicles, electric vehicles had a 7.90% share, while CNG and hybrid vehicles accounted for 24.67% and 8.02%, respectively.
Petrol's share of passenger vehicle sales declined to 41.68% from 47.62% a year earlier. The combined share of CNG, hybrid and electric passenger vehicles reached 40.59%, narrowing the gap with petrol to 1.09 percentage points.
Check July Auto Sales Highlights Here
FADA Data
FADA said passenger vehicle inventory rose to 33–35 days at the end of July, compared with its recommended level of 21 days. The association urged manufacturers to align wholesale dispatches with retail demand as dealers begin stocking vehicles ahead of the festive season.
The data were compiled from 1,465 of India's 1,468 regional transport offices as of Aug. 5. Registration figures for three-wheelers, commercial vehicles and tractors did not include Telangana.
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