Vehicle retail sales up 26% at 25,91,138 units in July

Total automobile retail sales in India grew by 25.89 per cent 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 per cent, 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 per cent, 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 per cent, FADA said.

Commercial vehicles also witnessed a 24.04 per cent 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 per cent…,” 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 per cent, Hybrid 8.02 per cent, EV 7.9 per cent) reached 40.59 per cent, just 1.09 percentage points behind petrol’s 41.68 per cent, 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 per cent against 7.65 per cent 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 per cent from 9.6 per cent a year ago.”

With the first four months of FY27 witnessing 8.27 per cent growth, the runway into the festive season is firmly intact, he added.