Indian auto industry hits new high; Sells 2.96 crore units in financial year 2026

The Indian automobile industry achieved a new milestone, selling nearly 3 crore vehicles in financial year 2026. According to data from the Federation of Automobile Dealers Associations (FADA), auto retail sales peaked at 2,96,71,064 units, a 13.30% year-on-year growth, with five of six categories setting new annual records.

FADA President CS Vigneshwar attributed the growth to GST 2.0, implemented in September 2025, which reduced rates by 7-10% across categories. “The festive convergence of Navratri and Diwali in October delivered an all-time record monthly retail of over 40 lakh units,” he said.

Two-wheelers reclaimed their pre-COVID peak, selling over 2.14 crore units (13.40% growth). Passenger vehicles crossed the 47-lakh mark, growing 13%, driven by new models and SUV demand.