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Month-on-month, retail sales were almost flat (-0.16 per cent) over a strong June 2026

Sales of two-wheelers, three-wheelers, commercial vehicles, passenger vehicles, tractors and wheeled construction equipment were at an all-time high

The auto industry retailed 25,91,138 units in July 2026, up 26 per cent year-on-year, the strongest July growth in the series outside Covid-distorted base years, according to Federation of Automobile Dealers Associations (FADA). Month-on-month, retail sales were almost flat (-0.16 per cent) over a strong June 2026. FADA Vice-President Sai Giridhar said July 2026 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 high.broad-based growthGrowth was broad-based rather than mix-led. That fact that July, a seasonally weak month marked by erratic monsoon, ranked as the 12th-highest retail month of the 151 months since January 2014 — a list otherwise dominated by festival months — underscores the structural depth of the India growth story, he added.Dealers attribute this momentum to GST 2.0-led affordability, ease of retail finance and favourable festival timing on a July 2025 base that had declined nearly 4 per cent.Two-wheeler retail saw the best July ever with sales crossing the 18-lakh mark for the first time. Dealers attributed this to GST-led affordability, the reopening of schools and colleges, improving monsoon sentiment and accelerating EV adoption. 2W EV share touched a record 11.24 per cent against 7.65 per cent a year ago.FADA said for the first time, PV sales crossed the 4 lakh mark in July — though 1.68 per cent lower m-o-m. Dealers credited this to GST 2.0 affordability and new launches. OEM schemes supported July bookings even as consumer hesitation around the E20 transition nudged buyers towards CNG, hybrids and EVs, said FADA.Looking ahead to August, FADA says dealer optimism firms considerably. Expectations centre on the festival curtain-raiser around Independence Day, Onam and Raksha Bandhan. Further, purchases last August were deferred ahead of the GST rate-cut announcement.Total EV retails touched 3,27,901 units — the highest for any month in history — with 2W and CV EV volumes at all-time record, taking overall EV penetration to about 12.7 per cent from 9.6 per cent a year ago. With sales in the first four months of FY27 up 18.27 per cent, the runway into the festival season is firmly intact, said FADA.Published on August 6, 2026