India's auto retail sector achieved record-breaking sales of 2,96,71,064 units in FY26, a 13.3% increase, primarily driven by the implementation of GST 2.0 which reduced the tax burden on mass-segment vehicles, according to the Federation of Automobile Dealers Associations (FADA).
koda Auto Volkswagen India aims to capture a 5 per cent share of India's passenger vehicle market by 2030, driven by new product launches, including alternate fuel vehicles, and a potential entry into the high-volume sub-4 metre SUV segment.
Passenger vehicle (PV) sales growth in India is expected to moderate to 3-5 per cent year-on-year (Y-o-Y) in financial year 2027 (FY27) due to a high base and preponed replacement demand, according to a report released by India Ratings and Research on Thursday.
Domestic automobile retail sales in India experienced a significant surge of 26 per cent year-on-year in February, driven by improved affordability and market confidence across various segments, according to FADA.
Retail sales of vehicles across categories in India in 2025 grew by 7.71 per cent at 2,81,61,228 units as compared to 2,61,45,445 in 2024, with GST 2.0 helping overcome a subdued start to the year, Federation of Automobile Dealers Associations said on Tuesday.
India's electric vehicle (EV) markets expanded gains in January compared to the year-ago period, as two-wheeler and passenger vehicle sales triggered a shuffle in the competitive landscape, data from an automobile dealers' association showed.
Electric vehicle (EV) retail sales surged 16.37 per cent year-on-year to 22,70,107 units in 2025, driven by a 77 per cent jump in electric passenger car sales, according to data released by dealers' body FADA on Wednesday. The EV makers had recorded a total sales of 19,50,727 units in 2024, the Federation of Automobile Dealers' Association (FADA) said.
India's electric passenger vehicle (ePV) market has expanded sharply over the past five years, with registrations rising from just 3,252 units in 2020 to about 170,000 in 2025. Throughout this scale-up, southern states have remained the bedrock of adoption, consistently contributing around one-third of national electric vehicle (EV) registrations - emphasising the region's role as the structural backbone of India's EV transition.
Rural India outpaced urban centres in passenger vehicle sales in 2025, recording a growth of 12 per cent compared with 8 per cent in cities.
While GST on ICE vehicles was brought down significantly, for electric cars it remained at 5 per cent.
Festivals also contribute to the rise in overall automobile retail sales, says dealers association.
Automobile retail sales across the domestic market witnessed a 21 per cent year-on-year increase in the 42-day festive season led by record registrations of passenger vehicles and two-wheelers aided by GST rejig enabled drop in prices across segments, dealer' body FADA said on Friday.
'The petrol lobby is very rich and strong.'
Electric passenger vehicle (PV) retail sales jumped more than twofold in September with Tata Motors (TaMo) leading the pack having over 6,000 registrations and a 40 per cent market share.
After a record-breaking year, India's automobile industry is entering 2026 on a relatively strong footing, with sales growth expected in the 6-8 per cent range. The outlook is underpinned by policy support, including GST rationalisation, easing monetary conditions, and income tax relief, which together are likely to improve affordability and sustain consumer demand across vehicle segments.
Vinfast sold 137 cars versus Tesla's 109 during the festive months of September and October, as BYD maintained a strong lead with over 1,100 cars sold, according to Fada data.
Passenger vehicle retail sales shot up 35 per cent year-on-year during the nine-day Navratri period this year, helping the overall registrations last month grow 6 per cent, as offtakes remained muted in the first 21 days of the month and only took off after the roll-out of new GST rates on September 22, dealer' body FADA said on Tuesday.
India may see its busiest EV festive season in 2025 with SUVs, luxury cars and scooters set to launch, but rare-earth supply bottlenecks risk delaying rollouts.
Spreading risks in sourcing raw materials for electric vehicle (EV) manufacturing is "very critical" and the government can play a key role by enabling access to these from multiple locations worldwide, said Vivek Srivatsa, chief commercial officer at Tata Passenger Electric Mobility, on Friday while stressing the need for faster localisation, especially of batteries.
Domestic automobile retail sales declined 4 per cent year-on-year in July amid drop in demand for passenger vehicles and two-wheelers, dealers' body FADA said on Thursday. Overall registrations dropped to 19,64,213 units last month, as compared to 20,52,759 units in July 2024.
Electric vehicle (EV) sales in India rose 28.60 per cent to 1,80,238 units in June over the period year-ago, driven by massive jump in e-passenger vehicle volumes, Federation of Automobile Dealers' Association (FADA) said in a statement on Tuesday. Electric passenger vehicle sales, as per FADA data, stood at 13,178 units in the previous month compared to 7,323 e-PVs in June 2024, registering a sharp increase of 79.95 per cent year-on-year.
More Indians start car shopping online, pushing automakers and dealers to respond quickly, train staff, and use AI to turn clicks into showroom visits.
Retail sales of electric passenger vehicles (ePVs) nearly doubled in July 2025, surging 93 per cent year-on-year (Y-o-Y) to 15,528 units, even as overall passenger vehicle (PV) retail volumes declined marginally. In contrast, electric two-wheeler (e2W) sales dropped by 4.3 per cent to 102,973 units, according to the Federation of Automobile Dealers Associations (Fada) data.
Customers who have already booked earlier variants will also have the option to upgrade to the 79 kWh battery version.
Manufacturers of passenger vehicles (PVs) in the first half of the calendar year (2025) reported a modest 0.5 per cent year-on-year increase in wholesale dispatches, while retail sales grew 2.5 per cent for the same period, reflecting a calibrated approach by automakers amid elevated dealership inventories and cautious consumer sentiment. According to the Society of Indian Automobile Manufacturers (Siam), dispatches rose marginally to 2.16 million units, up from 2.15 million units a year earlier.
Passenger vehicle retail sales witnessed 3 per cent on-year decline in May with customers delaying purchases in several states due to India-Pakistan conflict and further softening of demand for entry-level models, dealers' body FADA said on Friday. The passenger vehicle registrations last month stood at 302,214 units, as compared to 311,908 units in May 2024.
Siam argues that a 2040 ban could destabilise ongoing and future investments and threaten millions of jobs in the automotive value chain.
Long standing number two passenger vehicle maker in India, Hyundai Motor India, has slipped to fourth position in the domestic market in terms of retail sales last month behind Maruti Suzuki India, Mahindra & Mahindra and Tata Motors, as per the latest data shared by dealer's body FADA. Hyundai Motor India clocked retail sales of 38,156 units last month, a dip of 20 per cent as compared with 47,540 units in February last year.
Fada estimates that global supply chain headwinds like scarce availability of rare earth elements for electric vehicle components and geopolitical tensions may affect urban consumer sentiment in June as well.
Hero MotoCorp is expecting its electric vehicle (EV) business to break even once it reaches monthly sales volumes of 25,000 to 30,000 units, which is a couple of years away, Chief Financial Officer (CFO) Vivek Anand said on Tuesday. "This year, in 2024-25 (FY25), if I really look at my EV performance, our volumes have grown by 200 per cent," Anand told analysts during the company's post-results conference call.
'The slowdown in motor insurance premium growth is due to slower growth in vehicle sales. Also, there has been minimal hike in third-party rates in the past three years which is affecting the growth rate of third-party premiums.'
Retail sales of vehicles across categories in India grew by 11.21 per cent at 32,08,719 units in November, as compared to 28,85,317 units in the same month last year riding on two-wheeler demand, Federation of Automobile Dealers Associations said in Monday. Retail sales of two-wheelers were at 26,15,953 units last month, as compared to 22,58,970 units in November 2023, a growth of 15.8 per cent buoyed by the festive spillover.
Maruti Suzuki India (MSIL) said on Thursday its operations are unaffected by the global rare earth magnet shortage, but added that the situation is "uncertain and evolving". The firm said it is exploring multiple solutions to maintain continuity in operations and will notify stakeholders in case of material impact.
Top executives from Siam and major carmakers recently met with Heavy Industries Secretary Kamran Rizvi to discuss the matter. Officials from NITI Aayog were also present.
Skoda Auto India, the Czech carmaker that has recently found success with its compact SUV Kylaq, says it remains committed to developing a fully localised electric vehicle (EV). The EV will be manufactured at its Chakan facility for both Indian market and exports.
The Indian automobile retail sector saw a strong start to 2025, with overall sales increasing by 6.6 per cent year-on-year (YoY) in January, according to the latest report by the Federation of Automobile Dealers Associations (FADA). Despite the positive numbers, the association noted that auto dealers have mixed expectations for the coming months. Nearly half (46 per cent) anticipate further growth in sales, while 43 per cent believe sales will remain steady.
Dealers said the discounts this March are higher than the same month in the previous year.
The meltdown in Dalal Street that wiped out investor wealth to the tune of 44 trillion in 2025 also seems to be having a ripple effect on the country's vibrant automobile retail sales.
The total vehicle retail sales in India witnessed a 32 per cent on-year rise in October to 28,32,944 units with all segments including two-wheelers and passenger vehicles registering strong growth, Federation of Automobile Dealers' Association (FADA) said on Wednesday. The total vehicle retail sales in October 2023 stood at 21,43,929 units, as per FADA. The strong growth in October this year was largely driven by the rural market, especially boosting two-wheeler and passenger vehicles sales, supported by increased Minimum Support Price (MSP) for Rabi crops, FADA said.
The only silver lining in March's performance -- which otherwise dragged down the financial year's momentum -- was a 6 per cent year-on-year (Y-o-Y) growth compared to March of the previous year. This is largely due to incentives, festival-driven gains, and new launches.
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