Auto retail sales hit record 2.42 million in August, rise 18%: FADA

Retail car sales in India hit a record for the month of August, according to figures issued by the Federation of Automobile Dealers Associations (FADA) on Monday. 

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Total sales increased 18% year over year to 2,423,201 units. Sales of passenger cars, two-wheelers, three-wheelers, and commercial vehicles reached all-time highs in August.  

Overall retail volumes were 6.48% lower than in July, notwithstanding the year-over-year rise. FADA attributed the month-over-month decline to the seasonal monsoon slowdown and a shift in the holiday calendar, with Ganesh Chaturthi and some of the Onam-led sales moving into September.  

Wheeled construction equipment showed the largest rise, rising 31.45%. Two-wheeler sales increased by 19.69%, passenger car sales by 16.14%, and commercial vehicle sales by 14.45%. Three-wheeler sales rose by 8.64%, while tractor sales rose by 0.84%. 

According to FADA President Sai Giridhar, the fuel mix for passenger cars changed more significantly during the month. For the first time, retail sales of passenger cars were dominated by CNG, hybrid, and electric vehicles over petrol.  

41.95% of passenger car sales were powered by alternative fuels, while 40.85% were powered by petrol. 

Citing the low base of August 2025, when some consumers deferred purchases expecting a reduction in GST 2.0 rate, he also cautioned against reading too much into the year-on-year growth. The dealers also said that they were disappointed with the initial festive demand. 

Sales of passenger cars surpass 400,000  

402,398 passenger cars were sold at retail in August, up 16.14% from the same month the year before. August was the best August ever, with PV sales exceeding 400,000 units per month for the first time. 

However, sales were 3.40% less than they were in July.  

Passenger car sales in rural areas grew by 24.99% annually, while those in urban areas grew by 10.93%.  

Sales of passenger cars were dominated by CNG (25.28%), followed by hybrids (9.04%) and electric cars (7.63%). These three categories combined accounted for 41.95% of PV retail sales. 

Petrol remained the largest individual fuel category. 

Dealers linked the shift towards CNG, hybrids and EVs partly to running-cost considerations and continued hesitation among consumers over the E20 transition. 

Passenger-vehicle inventory also increased. Stock levels rose by another five days from the end of July to around 38-40 days, compared with FADA's recommended benchmark of 21 days. About 56% of PV dealers reported higher inventory compared with the previous month. 

Two-wheeler sales also hit a record 

Two-wheeler retail sales stood at 1,714,610 units in August, up 19.69% year-on-year. This was the segment's best August and its first new August record since 2018. 

Sales were 5.70% lower than July. 

Sales of two-wheelers (two-wheel passenger vehicles) in rural areas grew 20.25% year-on-year, slightly more than the 19.07% growth in urban areas. 

Electric two-wheelers made up 10.68% of sales, up from 7.66% a year earlier. It was the first time the EV share crossed 10 per cent in a non-festive month. 

Commercial vehicle sales rise 14.45% 

August was the largest month on record for the industry as retail sales of commercial vehicles increased 14.45% year over year to 90,769 units. Despite this, the seasonal slowdown in freight business was the main reason for the 8.93% drop in volumes from July.  

CV sales in rural areas increased by 16.33% annually. Light commercial vehicles increased by 15.32%, heavy commercial vehicles by 13.98%, and medium commercial vehicles by 10.38% in this market.  

Dealers cited infrastructure, e-commerce logistics, mining, and reliable finance as some of the variables affecting demand. 

5.18% of sales were electric commercial vehicles, up from 2.06% the previous year. Additionally, E-CV volumes set a new monthly record. 

Three-wheeler sales at best-ever August level 

Retail sales of three-wheelers increased 8.64% year over year to 122,281 units in August, the strongest month for the segment. 65.30 percent of three-wheeler sales were electric automobiles.  

Overall, despite the month-over-month drop from July, August saw record retail sales. FADA said the coming festive period, particularly sales through September to November, would provide a better indication of how demand is holding up beyond the favourable year-on-year comparison.