FADA Car Retail Sales September 2026: Brand-wise Report
According to data released by the Federation of Automobile Dealers Association (FADA), India’s passenger vehicle retail market recorded strong year-on-year growth in September 2026. Passenger vehicle sales stood at 4,27,213 units, registering a 32.1% increase compared with the same month last year.
However, FADA noted that the strong YoY growth needs to be viewed in the context of a weaker September 2025, when buyers delayed purchases amid expectations of price reductions following the introduction of GST 2.0.
Note: Telangana RTO is not included in FADA sales data.
Maruti Suzuki Retains Top Position
Maruti Suzuki remained India's best-selling carmaker in September 2026, recording retail sales of 1,69,132 units, up 30.05% YoY. Its sales also increased 2.38% month on month (MoM).
Despite strong volume growth, Maruti Suzuki's market share declined from 40.21% in September 2025 to 39.59% in September 2026.
Mahindra Moves Ahead of Tata
Mahindra secured the second position with sales of 57,343 units, compared with 41,270 units in the corresponding period last year. The company registered 38.93% YoY growth and 14.13% MoM growth.
Mahindra's market share increased from 12.76% to 13.42%.
It narrowly overtook Tata by just 89 units, making it the biggest change in the September 2026 ranking.
Tata Slips to Third Position
Tata Motors recorded retail sales of 57,254 units, up 28.66% YoY. However, its sales declined 1.02% MoM, making Tata the only carmaker among the top 10 to record a monthly decline.
Its market share fell from 13.76% in September 2025 to 13.40% in September 2026.
Hyundai Maintains Fourth Spot
Hyundai remained in fourth position with sales of 50,201 units, registering 31.46% YoY growth and 6.84% MoM growth.
Its market share stood at 11.75%, slightly lower than the 11.81% recorded in September 2025.
Toyota and Kia Continue Strong Performance
Toyota sold 28,050 units in September 2026, marking 21.56% YoY growth and 12.85% MoM growth. Its market share stood at 6.57%, compared with 7.14% a year earlier.
Kia recorded one of the strongest performances among the top 10 carmakers. Its sales reached 26,663 units, representing 45.91% YoY growth and 14.09% MoM growth. Its market share increased from 5.65% to 6.24%.
Skoda Volkswagen, MG, Honda and Renault
Skoda Volkswagen Group recorded sales of 8,479 units, up 13.51% YoY and 13.52% MoM. Its market share declined from 2.29% to 1.98%.
MG sold 6,475 units, registering 13.74% YoY growth and 11.95% MoM growth. Its market share declined from 1.76% to 1.52%.
Honda recorded sales of 5,283 units, up 42.51% YoY and 6.34% MoM. Its market share improved from 1.15% to 1.24%.
Renault rounded off the top 10 with 3,410 units, recording 33.10% YoY growth and 4.12% MoM growth. Its market share increased marginally from 0.79% to 0.80%.
Petrol Cars Regain Slight Lead
FADA's September 2026 data also shows a change in the fuel mix. Petrol and ethanol-powered cars accounted for 41.27% of passenger vehicle sales, compared with 40.85% in August 2026 and 47.18% in September 2025.
CNG and LPG vehicles accounted for 23.11%, down from 25.28% in August but higher than 22.02% in September 2025.
Hybrid vehicles increased their share to 9.44%, compared with 9.04% in August and 7.30% a year earlier. EVs also gained share, reaching 8.45% versus 7.63% in August and 5.74% in September 2025.
Together, petrol/ethanol vehicles held a 41.27% share, while alternative-fuel vehicles accounted for around 41% of the market.
October 2026 Could Be the Real Test
FADA has described the outlook for October 2026 as “Cautiously Optimistic.” The association noted that September's strong YoY growth was supported by a favourable base effect, making October a more important month for assessing the underlying demand trend.
October 2025 recorded more than 4.66 lakh passenger vehicle retail sales, supported by GST 2.0 and strong festive demand. Therefore, October 2026 will provide a tougher year-on-year comparison.
According to FADA, 75.57% of dealers expect sales to grow in October 2026, while 19.46% expect a flat market and 4.98% anticipate a decline.
FADA President Sai Giridhar highlighted affordability as a key factor for sustaining the current growth momentum, while warning that further price increases could put pressure on demand.
Overall, September 2026 was a strong month for India's passenger vehicle retail market, with 4,27,213 units sold and 32.1% YoY growth. Mahindra's narrow move ahead of Tata and the continued gains recorded by Kia, Honda and other manufacturers will be key trends to watch in the coming months.
