- India's automobile retail sales hit a record 29.67 million units in FY26, growing 13.3% annually
- Two-wheeler sales rose 13.4% to over 21.4 million units, driven by rural demand and financing
- Passenger vehicles crossed 4.7 million units, with SUVs and alternative powertrains gaining popularity
India's automobile retail industry closed FY'26 on a historic high, inching closer to the 3-crore milestone as a record-breaking March provided a strong finish to a landmark year. According to data released by the Federation of Automobile Dealers Associations (FADA), total vehicle retail sales during the financial year stood at 29.67 million units, marking a 13.3% year-on-year growth and the highest annual volume ever recorded.
Two-Wheelers Pick Pace
The defining feature of FY'26 was the resurgence of two-wheelers, which reclaimed and surpassed their pre-pandemic peak. Sales in the segment rose 13.4% to over 21.4 million units, aided by improved affordability, stable financing and a sharp recovery in rural demand. March 2026 proved pivotal, with two-wheeler retail surging nearly 29% year-on-year, underlining the scale and quality of the rebound.
SUVs Still Rule Passenger Vehicle Sales
Passenger vehicles also posted a best-ever annual performance, crossing 47 lakh units for the first time. The segment benefited from a steady pipeline of new launches, sustained preference for SUVs and growing acceptance of alternative powertrains such as CNG and electric vehicles. Notably, rural PV demand outpaced urban markets both during the year and in March, highlighting the widening consumption base beyond India's metros.
FADA's March report card
Photo Credit: NDTV Profit
March 2026 emerged as the strongest month on record for auto retail, with sales climbing 25.3% year-on-year to nearly 2.7 million units. Rural markets once again stole the spotlight, growing faster than urban centres and reinforcing the narrative of a broad-based recovery.
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Tractor And EV Sales
Other segments reflected similar strength. Tractor sales crossed the 10-lakh mark for the first time, buoyed by favourable monsoons and healthy farm income, while commercial vehicles returned above FY'19 levels, supported by infrastructure activity and freight movement. The electric transition gathered pace as well, with EVs accounting for over 60% of three-wheeler retail during the year.
With inventories normalised and dealer sentiment cautiously optimistic, the FY'26 close signals not just a strong finish, but a structurally healthier auto retail market heading into FY'27.
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