India's dealers registered a record 25.37 lakh vehicles in September, but the man who released the figure was quick to say the headline growth flatters the market.
The Federation of Automobile Dealers Associations (FADA) reported total retail up 31.82% year-on-year and 4.69% over August. FADA President Sai Giridhar warned that "the 31.82% is the most base-distorted print of the year." The reason is simple. In September 2025, many buyers held back purchases while they waited for GST 2.0 rate cuts, so last year's number was unusually low. Excluding September, FADA put growth in the first five months of the year at roughly 17%.
Segment by Segment
Every category grew:
- Two-wheelers: 17.90 lakh units, up 33.08%
- Passenger vehicles: 4.27 lakh units, up 32.10%
- Commercial vehicles: 1.04 lakh units, up 37.62%, crossing the one lakh mark for the first time
- Three-wheelers: 1.33 lakh units, up 22.25%
- Tractors: 76,906 units, up 13.75% year-on-year but down 12.58% from August
For the first half of FY2027, from April to September, retail reached about 1.55 crore units, up 20.77%.
Passenger Vehicles: The Detail
PV retail was up 6.17% on August's 4.02 lakh. Maruti Suzuki led with roughly 1.69 lakh units and a 39.6% share. Mahindra and Tata Motors sat almost level at about 13.4% each, and Mahindra edged past Tata by just 89 units on one published tally. Hyundai followed at around 50,200 units.
The fuel mix keeps shifting. Petrol and ethanol blends made up 41.27% of sales, CNG and LPG 23.11%, hybrids 9.44% and electric vehicles 8.45%, up from 7.63% in August.
EV Penetration
Across all categories, EV retail was about 3.34 lakh units, or roughly 13% of the market. Electric two-wheelers took an 11.58% share, while electric three-wheelers held close to 65%.
The Worry: Inventory
Dealer stock has climbed to 43 to 45 days, double the 21-day level FADA considers healthy. The federation listed four things to watch: OEM supply, October price increases, the high base from last year and weak rainfall in some regions.
October Outlook
Still, dealers sound upbeat. FADA says 75% of dealers expect growth in October, and 63% already report healthy booking pipelines. Navratri begins on October 11, with Dussehra to follow. FADA described its own stance as "cautiously optimistic."
For buyers, the practical takeaway is that high inventory usually means better festive discounts, though price hikes announced by several brands could cut into those savings.
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