Auto sales at record 24.23 lakh units in August; alternative-fuel PVs overtake petrol: FADA

07 September,2026 12:57 PM IST |  New Delhi  |  mid-day online correspondent

Alternative fuel vehicles such as compressed natural gas, hybrid and electric vehicles overtook petrol cars in the passenger vehicles segment for the first time, with their share at 41.95 per cent compared to that of petrol’s 40.85 per cent

Representational Image. File pic.


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The Indian automobile sector witnessed its biggest-ever August monthly sales, registering a growth of 17.51 per cent, despite a monsoon deficit, according to news agency PTI.

The retail sales in August were at a record 24,23,201 units compared to 20,62,038 units in the same month last year, the Federation of Automobile Dealers Associations (FADA) said in a statement.

"August 2026 delivered the biggest-ever August in Indian auto retail, with the industry registering 24,23,201 units, up 17.51 per cent YoY, even as retails eased 6.48 per cent over a record July on the seasonal monsoon lull and a festival calendar that shifted Ganesh Chaturthi and the spillover of Onam-led buying into September," FADA President Sai Giridhar said.

Alternative fuel vehicles surpass petrol cars

Besides, alternative fuel vehicles such as compressed natural gas (CNG), hybrid and electric vehicles overtook petrol cars in the passenger vehicles segment for the first time, with their share at 41.95 per cent compared to that of petrol's 40.85 per cent.

According to Giridhar, a little over a year ago petrol led this contest by nearly eleven percentage points and that lead has now been erased.

The passenger vehicle (PV) retail sales were at 4,02,398 units last month, as against 3,46,468 units in August 2025, a growth of 16.14 per cent.

In terms of two-wheeler sales, they were at 17,14,610 units in August this year, an increase of 19.69 per cent over 14,32,537 units in the same month a year ago.

Three-wheeler sales were at 1,22,281 units during the month, registering a growth of 8.64 per cent over last year. In August 2025, they stood at 1,12,553 units.

Commercial vehicles too witnessed a 14.45 per cent rise in retail sales at 90,769 units last month as compared to 79,306 units in 2025.

Rural sales

Rural passenger vehicle sales rose 24.99 per cent versus urban's 10.93 per cent. Rural commercial vehicle sales rose 16.33 per cent and rural three-wheeler sales rose 23.95 per cent, even as urban three-wheeler sales fell.

"Rural demand, in other words, has begun to decouple from the monsoon, the farm-income-linked segment softened, yet the non-farm rural economy of livelihood mobility, goods movement and construction kept accelerating," Girdhar said.

In terms of tractor sales, a widening monsoon deficit at around 13 per cent, with 14 states short of rain, dragged it 25.03 per cent lower month-on-month, even as every other rural segment outgrew its urban counterpart.

According to FADA, the dealer sentiment for September has eased from July's peak, with 67.09 per cent of dealers expecting growth, 27.35 per cent a flat market and 5.56 per cent de-growth.

(With inputs from PTI)

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