Auto Retail Sales Rise 18% in August 2026 to Record 2.42 Million Units, Says FADA

Automobile retail sales rose 18% year-on-year to 2,423,201 units in August 2026, according to a Business Standard news report citing the Federation of Automobile Dealers Associations (FADA). The figure was the highest recorded for August across the industry. 

Sales, however, fell 6.48% from July 2026. The month-on-month decline came during the monsoon period, while the festival calendar also played a part, with Ganesh Chaturthi and some Onam-related purchases moving into September 2026. 

Passenger Vehicle Sales 

Passenger vehicle sales increased 16.14% year-on-year to 402,398 units. August marked the segment’s best-ever sales for the month and the first time sales crossed 400,000 units. Volumes were 3.40% lower than July. 

Rural PV sales rose 24.99%, compared with 10.93% growth in urban markets. CNG, hybrids and EVs together made up 41.95% of PV sales, ahead of petrol/ethanol at 40.85%. 

CNG accounted for 25.28% of PV sales, hybrids 9.04% and EVs 7.63%. Petrol remained the largest single fuel category. 

Two-Wheeler Sales 

Two-wheeler retail sales stood at 1,714,610 units, up 19.69% from a year earlier. It was the segment’s best August and its first new August peak since 2018. 

Rural two-wheeler sales grew 20.25%, compared with 19.07% in urban areas. Electric two-wheelers accounted for 10.68% of sales, against 7.66% a year earlier. Sales were 5.70% lower than July. 

Commercial Vehicles 

Commercial vehicle sales rose 14.45% year-on-year to 90,769 units, the highest August figure for the segment. Sales fell 8.93% from July amid the seasonal freight slowdown. 

Light commercial vehicles grew 15.32%, heavy commercial vehicles 13.98% and medium commercial vehicles 10.38%. Electric CVs accounted for 5.18% of sales, compared with 2.06% a year earlier. 

Other Segments 

Three-wheeler sales increased 8.64% to 122,281 units, with EV penetration at 65.30%. Wheeled construction equipment recorded 31.45% growth, while tractors rose 0.84%. 

PV inventory stood at around 38-40 days, up five days from July-end and above Fada’s 21-day benchmark. Around 56% of PV dealers reported higher stock. 

Read More: Bengaluru Sets $400 Billion Economy Goal by 2037; Targets 2-2.5 Million New Jobs! 

Conclusion 

August 2026, automobile retail sales reached a record 2,423,201 units, while monthly sales declined from July amid the monsoon and festival calendar shifts. 

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