FADA Sales July 2026: Auto Sales Up By Over 25 Per Cent; Passenger Vehicle, Two-Wheelers Report Best-Ever Numbers For The Month

The Federation of Automobile Dealers Associations has reported a strong showing by the auto industry in July 2026 with a 25.89 per cent growth. This marked one of the best-ever growths for the month outside the COVID-affected period, when sales grew year-on-year from a disproportionately small base. The apex dealer body also reported new monthly highs in retail sales across all segments, with July marking the first time sales in all segments witnessed best-ever retail numbers. Cumulative sales for the month stood at 25,91,138 units - up from 20,58,325 units in July 2025. Sales, however, were down 0.16 per cent over June 2026 (25,95,262 units).

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Commenting on the industry sales, FADA Vice President Sai Giridhar said, “July’26 has etched itself into Indian Auto Retail history — for the first time on record, every single category posted its best-ever July, with Two-Wheelers, Three-Wheelers, Commercial Vehicles, Passenger Vehicles, Tractors and Wheeled Construction Equipment all at all-time July highs. The industry retailed 25,91,138 units, up 25.89% YoY — the strongest July growth in the series outside Covid-distorted base years — while holding almost flat (-0.16%) over a strong June.”

Passenger Vehicle Sales Cross 4 Lakh Units For First Time in July

FADA reported passenger vehicle sales of 4,16,555 units in the month - the first time retail sales ever crossed the 4 lakh unit mark in July. It marked a 19.13 per cent growth over July 2025 (2,49,674 units), though sales were down by 1.68 per cent over June 2026 (4,23,677 units).

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Commenting on the performance, Giridhar said, “ Passenger Vehicle retails came in at 4,16,555 units, up 19.13% YoY — the first time PV has crossed the 4-lakh mark in a July — though 1.68% lower MoM. The Bharat-led character deepened, with Rural PV growing 24.72% YoY against Urban’s 15.76%. Dealers credited GST 2.0 affordability, new launches and scheme support — 44.05% said OEM schemes supported July bookings — even as consumer hesitation around the E20 transition nudged buyers towards CNG, hybrids and EVs.”

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FADA also reported that 40.59 per cent of vehicles sold fell in the CNG, EV or hybrid categories, falling just shy of petrol’s 41.68 per cent contribution (down from 47.62 per cent last year).

Two-Wheelers Report Best-Ever July with Over 18 lakh Units Sold

The two-wheeler category ended July 2026 with 18,18,289 units - the highest ever retail sales and the first time it crossed the 18 lakh unit mark in the month. This marked a 28.25 per cent growth over July 2025, though sales were down 1.26 per cent over June 2026.

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“On a YoY basis, Rural (+28.59%) edged past Urban (+27.86%), but the sequential picture diverged sharply: Urban 2W rose 5.04% MoM while Rural declined 6.16%, as erratic rains and flooding across western and central belts and the inauspicious Aadi/Shravan window in southern markets kept rain-fed rural walk-ins subdued. Dealers cited GST-led affordability, the reopening of schools and colleges, improving monsoon sentiment and accelerating EV adoption — 2W EV share touched a record 11.24% against 7.65% a year ago — while flagging short supplies of high-demand models that left bookings pending,” Giridhar said.

Commercial Vehicles, Three-Wheelers & Tractors Record Best-Ever July Sales

Three-wheelers also ended the month on a high with 1,33,778 units sold - up 16.16 per cent year-on-year. This also marked a new high for the month of July for the segment. Similarly, tractors also touched a new high for July at 1,17,249 units - a 28.10 per cent growth over July 2025. Commercial vehicles, meanwhile, ended the month with 99,666 units sold - up 24.04 per cent from 80,348 units in July last year.