Growth was led by wheeled construction equipment at 31.45 per cent, followed by two-wheelers at 19.69 per cent, passenger vehicles at 16.14 per cent and commercial vehicles at 14.45 per cent.
The rural-urban divergence was pronounced, with rural PV sales rising 24.99 per cent year-on-year compared with 10.93 per cent growth in urban markets.
Rural sales, up 20.25 per cent year-on-year, again edged urban growth of 19.07 per cent.
Light commercial vehicles grew 15.32 per cent year-on-year, heavy commercial vehicles 13.98 per cent and medium commercial vehicles 10.38 per cent.
Three-wheeler retail sales stood at 122,281 units, up 8.64 per cent year-on-year, posting their best-ever August.
Automobile retail sales clocked their best-ever August last month, reaching 2,423,201 units, up 18 per cent from the same period last year, driven by record August retail numbers in passenger vehicles, two-wheelers, three-wheelers and commercial vehicles, according to data shared by the Federation of Automobile Dealers Associations (Fada) on Monday.
The new peak in overall sales came even as retail volumes declined 6.48 per cent from a record July, reflecting the seasonal monsoon lull and a festival calendar that shifted Ganesh Chaturthi and the spillover of Onam-led buying into September.
Growth was led by wheeled construction equipment at 31.45 per cent, followed by two-wheelers at 19.69 per cent, passenger vehicles at 16.14 per cent and commercial vehicles at 14.45 per cent. Three-wheelers grew 8.64 per cent, while tractors were nearly flat at 0.84 per cent.
“The defining development of the month, however, was a structural one: for the first time in India’s history, alternative fuels — CNG, hybrid and electric combined — overtook petrol in the Passenger Vehicle market, at 41.95% against petrol’s 40.85 per cent. A little over a year ago petrol led this contest by nearly eleven percentage points; that lead has now been erased,” said Sai Giridhar, president of Fada.
“We would, however, read the headline with discipline: much of the YoY strength rests on a soft August 2025 base, when buyers had deferred purchases awaiting the GST 2.0 rate cut, and dealers report that the festive curtain-raiser came in below their own expectations — the true test of the season lies in showroom conversion through September to November, not in year-on-year optics,” he said.
Passenger vehicle (PV) retail sales stood at 402,398 units, up 16.14 per cent year-on-year — the best-ever August and the first time PV sales crossed the 400,000 mark in the month — though volumes were 3.40 per cent lower month-on-month.
The rural-urban divergence was pronounced, with rural PV sales rising 24.99 per cent year-on-year compared with 10.93 per cent growth in urban markets.
Beyond the volume record, the fuel mix reached an inflection point. Alternative fuels — CNG at 25.28 per cent, hybrid at 9.04 per cent and electric vehicles (EVs) at 7.63 per cent — together accounted for 41.95 per cent of PV retail sales, edging past petrol/ethanol at 40.85 per cent for the first time.
Petrol, however, remained the single-largest individual fuel category.
Dealers attributed the shift to running-cost economics and continuing consumer hesitation around the E20 transition, which is nudging some petrol buyers towards CNG, hybrids and EVs.
On the channel side, PV inventory increased by another five days over July-end to around 38-40 days, well above Fada’s recommended 21-day benchmark. Around 56 per cent of PV dealers reported higher stock month-on-month.
With festive stocking underway, dealers urged PV original equipment manufacturers (OEMs) to align billing with retail sales so that dealer capital is not locked in ageing inventory.
Two-wheeler retail sales stood at 1,714,610 units, up 19.69 per cent year-on-year — the best-ever August and the first new August peak since 2018 — though volumes were 5.70 per cent lower month-on-month.
Rural sales, up 20.25 per cent year-on-year, again edged urban growth of 19.07 per cent.
Dealers credited sustained GST 2.0 affordability and steady rural demand, while the powertrain shift deepened. Two-wheeler EV share reached 10.68 per cent, crossing the 10 per cent mark in a non-festive month for the first time, compared with 7.66 per cent a year ago.
Commercial vehicle (CV) retail sales came in at 90,769 units, up 14.45 per cent year-on-year — the best-ever August — though volumes were 8.93 per cent lower month-on-month because of the seasonal freight lull.
Rural sales, up 16.33 per cent year-on-year, once again outpaced the broader market.
Light commercial vehicles grew 15.32 per cent year-on-year, heavy commercial vehicles 13.98 per cent and medium commercial vehicles 10.38 per cent.
Dealers cited infrastructure execution, mining and e-commerce-linked logistics, alongside steady financing, as key demand drivers.
Electric CV share rose to an all-time high of 5.18 per cent from 2.06 per cent a year ago, with e-CV volumes setting a fresh monthly record, signalling that fleet electrification is moving from pilots to purchase orders even as operators watch the September round of price increases.
Three-wheeler retail sales stood at 122,281 units, up 8.64 per cent year-on-year, posting their best-ever August. EV penetration in the segment stood at 65.30 per cent.
