Auto retail sales hit record high in FY26, near 3 crore mark: FADA
- IBEF
- April 7, 2026
India’s automobile retail sector achieved a historic milestone in FY26, with total vehicle registrations reaching 2,96,71,064 units, reflecting a robust 13.30% year-on-year growth, according to the Federation of Automobile Dealers Associations (FADA). The industry is now nearing the significant 3 crore annual sales mark, underlining strong and broad-based demand across segments. This growth has been structurally driven by improved affordability, rising mobility needs across urban and rural markets, and a diversified powertrain mix. Rural demand continued to narrow the gap with urban markets, supported by better cash flows and favourable economic conditions, while urban demand remained resilient.
Segment-wise, two-wheelers led the recovery, surpassing pre-COVID levels with sales exceeding 2.14 crore units, growing 13.40%. Passenger vehicles crossed the 47-lakh mark for the first time, registering 13% growth, driven by new launches, urbanisation, and rising preference for SUVs and alternative fuel vehicles. Tractors emerged as a standout performer, crossing 10 lakh units with an 18.95% growth, aided by strong farm incomes and a favourable monsoon. Commercial vehicles also hit record levels, crossing 10 lakh units with 11.74% growth, supported by infrastructure activity, while three-wheelers recorded an 11.68% rise with increasing electric vehicle penetration. However, the construction equipment segment declined by 11.70% due to project delays and a high base effect.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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