More Stories

Informist, Thursday, Aug. 6, 2026

 

Please click here to read all liners published on this story

--FADA: Jul total vehicle retail sales 2.59 mln units, up 25.9% on year
--FADA: Jul passenger vehicle retail sales 416,555 units, up 19.1% on year
--FADA: Jul 2-wheeler retail sales 1.82 mln units, up 28.3% on year
--FADA: Jul CV retail sales 99,666 units, up 24% on year
--FADA: Jul 3-wheeler retail sales 133,778 units, up 16.2% on year
--FADA: Jul tractor retail sales 117,349 units, up 28.1% on year
--FADA: Apr-Jul total vehicle retail sales 10.48 mln units, up 18.3% on year
--FADA: Next 3 mos seem decisively constructive with monsoon, festivals
--FADA: Outlook for Aug appears optimistic
--FADA: PV inventory rose to 33-35 days from 32-34 days Jun-end

 

MUMBAI – Retail sales of automobiles in India continued their strong growth momentum in July despite the recent war-driven fuel price hikes. Each segment of the automobile market registered its best-ever July, showing that the momentum spurred by the cut in goods and services tax in September remains alive and kicking. Dealerships in India sold 2.59 million automobiles in July, up almost 26% on year, with two-wheelers leading the charge, the Federation of Automobile Dealers Associations said in a release Thursday.

Dealerships sold 1.82 million two-wheelers in July, up 28% on year but down 1.3% on month. Two-wheelers accounted for 70% of the automobile registrations. Sales of two-wheelers grew 5% on month in urban areas but fell 6.2% in rural areas because of erratic rains and flooding across the western and central belts and the inauspicious window in the southern markets, the federation's Vice-President Sai Giridhar said.

 

"Dealers cited GST-led affordability, the reopening of schools and colleges, improving monsoon sentiment and accelerating EV (electric vehicle) adoption while flagging short supplies of high-demand models that left bookings pending," Giridhar said. The share of electric variants in the two-wheeler segment rose to a record high 11.24% in July, up from 7.65% a year ago.

 

Retail sales of passenger vehicles, the next biggest automobile segment in India by volumes, grew 19% on year but fell 1.7% on month to a record high 416,555 units. Sales of these vehicles grew 25% in rural areas, compared with 16% in urban areas. The share of powertrains powered by alternative fuels such as compressed natural gas, electricity, and hybrids together reached almost 41% in July, compared to petrol's share of 42%.

 

The inventory of passenger vehicles with dealerships increased to 33-35 days, a minor increase from the levels in June. "With festive stocking now beginning, half of PV dealers already reporting higher inventory and about a quarter carrying over 25% aged stock, we urge PV OEMs (original equipment manufacturers) to align dispatches strictly with retail so that dealer capital is not trapped in aged inventory," Giridhar said.

 

The retail sales of commercial vehicles in July were within striking distance of the 100,000 mark. Dealers sold 99,666 units in July, up 24% on year and almost 5% on month. Sales of these vehicles grew 29% in rural India and 19% in urban areas.

 

Sales of light commercial vehicles grew 28% on year in July while those of medium commercial vehicles and heavy commercial vehicles grew 25% and 17%, respectively. "Dealers cited cement, steel, and mining-linked movement, e-commerce logistics, and improving finance availability, even as school-bus season demand tapered," the federation said.

 

Retail sales of three-wheelers grew 16% on year to 133,778 units in July. Growth of sales in this segment was led by a rise in sales of conventional passenger three-wheelers, partly offset by contraction in sales of electric passenger rickshaws.

 

Dealers sold 117,349 tractors in July, up 28% on year and 5,501 units of construction equipment, up 46% on year. In the four months starting April, dealerships sold 10.48 million automobiles, up 18% on year.

 

OUTLOOK

Around 74% of dealers surveyed by the industry lobby group expect a growth in sales in August while 23% expect a flat market. "Expectations centre on the festive curtain-raiser -- Independence Day launches, Onam (16–26 Aug) and Raksha Bandhan (28 Aug) — supported by monsoon-fed rural cashflows and a favourable base, as purchases last August were deferred ahead of the GST rate-cut announcement," it said.

 

For Aug-Oct, around 88% of dealers surveyed by the federation expect growth, compared to 66% last month. "August and September retails will be flattered by last year's low base, when buyers deferred purchases awaiting GST 2.0 implementation; October then meets an unusually high base -- last year's GST-cut-fuelled festive surge -- with Dhanteras and Diwali shifting into November this year," the federation said, adding that it is "decisively constructuive" on retail sales for the next three months.  End

 

Reported by Anand JC

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.