Auto Retail Sales Hit 24.23 Lakh Units In August, Up 17.51% YoY; PV Sales Cross 4 Lakh For First Time: FADA

New Delhi, Sep 7 (KNN) India’s auto retail sales reached a record high for August at 24,23,201 units, registering 17.51 per cent year-on-year (YoY) growth, according to data released by the Federation of Automobile Dealers Associations (FADA). Passenger vehicle (PV) retail sales crossed the 4-lakh mark for the first time, rising 16.14 per cent YoY to 4,02,398 units.

The industry body highlighted that monthly performance moderated from July, with total retail sales declining 6.48 per cent month-on-month (MoM) and PV sales falling 3.40 per cent. 

It attributed the moderation partly to the seasonal monsoon lull and a shift in the festive calendar, with demand for Ganesh Chaturthi and Onam spilling over into September.

Two-Wheelers, Commercial Vehicles Post Strong Growth

Two-wheeler sales rose 19.69 per cent YoY to 17,14,610 units, while commercial vehicle sales increased 14.45 per cent to 90,769 units. Three-wheeler sales grew 8.64 per cent to 1,22,281 units. Wheeled construction equipment sales climbed 31.45 per cent, while tractor sales increased a modest 0.84 per cent, FADA noted.

Rural passenger vehicle demand remained particularly strong, growing 24.99 per cent YoY compared with 10.93 per cent growth in urban markets. However, PV inventory rose to 38-40 days, well above FADA’s recommended 21-day benchmark.

Alternative Fuels Gain Ground

Alternative-fuel vehicles, including CNG, hybrids and EVs, accounted for 41.95 per cent of PV sales in August, overtaking petrol and ethanol vehicles at 40.85 per cent for the first time. CNG vehicles accounted for 25.28 per cent, hybrids 9.04 per cent and EVs 7.63 per cent of PV sales, the industry body said.

Overall EV retail sales across categories rose 52.9 per cent YoY to 2,98,448 units, taking EV penetration to around 12.3 per cent from 9.5 per cent a year earlier.

FADA emphasised that August’s strong performance provides a positive start to the festive season, but elevated PV inventories, the low base of August 2025 and the pace of festive demand conversion will be key factors for the market in September-November.

(KNN Bureau)