India's automotive sector delivered exceptional results in July 2026, with total vehicle retail sales reaching a record 25,91,138 units, representing a 25.89% year-on-year increase from 20,58,325 units in July 2025, according to data released by the Federation of Automobile Dealers Associations (FADA). This marks the first time all six major vehicle segments have achieved peak monthly sales simultaneously. Maruti Suzuki achieved its highest-ever sales and production in July, with total sales rising 34% and domestic sales climbing 42%, while exports declined 5% during the month. Hyundai posted its highest-ever monthly sales in July, up 25% year-on-year, with domestic sales rising 23% and exports hitting a near-decade high, climbing 31% for the month. Tata Motors also recorded impressive growth with passenger vehicle sales surging 59% in July, while EV sales more than doubled, surging 114% compared to last year. Maruti Suzuki has now begun production at the fourth line of its Hansalpur plant in Gujarat, increasing total annual capacity to 2.9 million vehicles and making it Suzuki's first global manufacturing site with 1 million units of annual capacity.
Commercial vehicle sales climbed 24.04% year-on-year and 4.94% month-on-month to 99,666 units, demonstrating robust demand across all segments and marking the category's best-ever July performance. According to FADA data, light commercial vehicle registrations rose 27.65% from a year earlier to 61,634 units, while medium commercial vehicle sales increased 25% to 9,925 units. Heavy commercial vehicle registrations grew 16.72% year-on-year and 13% sequentially to 28,070 units. The strong performance was driven by improving economic conditions and infrastructure development projects. Mahindra & Mahindra also posted strong July numbers, with auto segment sales climbing 26% in July, SUV sales growing 20%, and light commercial vehicles in the 2-3.5 tonne category rising 21% for the month.
Two-wheeler retail sales stood at 18,18,289 units, up 28.25% year-on-year, marking a historic milestone as the 2W category crossed the 18-lakh mark for the first time in July. Rural two-wheeler sales demonstrated stronger momentum with 28.59% growth, edging past urban growth of 27.86%, though the sequential picture showed urban 2W rising 5.04% while rural declined 6.16% due to erratic monsoon conditions and flooding across western and central belts. As per FADA Vice President Sai Giridhar, this performance ranks as the 12th-highest retail month of the 151 months since January 2014, highlighting the structural depth of India's growth story. Bajaj Auto Ltd. reported a 30% year-on-year increase in total sales to 4.75 lakh units, with the two-wheeler segment showing strong momentum and exports demonstrating particularly strong performance with a 39% increase to 2.54 lakh units.
Passenger vehicle retail sales reached 4,16,555 units, up 19.13% year-on-year, marking the first time PV sales crossed the 4-lakh mark in July. The rural-urban dynamics showed a clear shift with rural PV growing 24.72% against urban's 15.76%, reflecting the Bharat-led character of the growth story. Dealers attributed this performance to GST 2.0 affordability, new launches and scheme support, with 44.05% of dealers crediting OEM schemes for supporting July bookings. TVS Motor Company Ltd. recorded impressive growth with a 38% rise in monthly sales to 6.30 lakh units, with total two-wheeler sales increasing 38% to 6.03 lakh units and electric two-wheeler sales jumping 158% to 60,934 units. India's electric two-wheeler registrations rose 80% year-on-year to 195,446 units in July, with EV penetration increasing to 11.1% despite flat month-on-month volumes.
The three-wheeler segment achieved a historic milestone in July 2026, with electric three-wheelers accounting for 65.08% of total retail registrations, marking a significant shift toward electric mobility. Overall three-wheeler registrations rose 16.16% year-on-year to 1,33,778 units, with electric three-wheelers recording their best July ever and confirming the continued electrification trend. Bajaj Auto retained its leadership in the overall three-wheeler market with 41,998 retail registrations, followed by Mahindra Last Mile Mobility at 13,455 units and Piaggio Vehicles at 9,134 units. In the competitive electric three-wheeler segment, Mahindra Last Mile Mobility retained the top spot with 12,848 registrations, ahead of Bajaj Auto's 11,974 units, though Bajaj grew faster with electric registrations rising 55% year-on-year compared to Mahindra's 41.9% growth. TVS Motor consolidated its position as the third-largest electric three-wheeler manufacturer with 4,123 registrations, up 82.5% year-on-year.
Electric vehicle retail sales across categories reached a record 3,27,901 units during July 2026, with electric vehicles accounting for 12.7% of total vehicle sales, up from 9.6% a year ago, marking the highest-ever monthly performance. In passenger vehicles, electric vehicles had a 7.90% share, while CNG and hybrid vehicles accounted for 24.67% and 8.02%, respectively. Petrol's share of passenger vehicle sales declined to 41.68% from 47.62% a year earlier, with the combined share of CNG, hybrid and electric passenger vehicles reaching 40.59%, narrowing the gap with petrol to just 1.09 percentage points. Tractor sales increased 28.10% year-on-year and 12.10% sequentially to 1,17,349 units, supported by higher rural demand and improving agricultural activity, with rural growth of 28.83% reflecting catch-up Kharif sowing. Wheeled construction equipment recorded the fastest growth among the major categories, with sales rising 46.07% from a year earlier to 5,501 units. FADA noted that passenger vehicle inventory rose to 33-35 days at the end of July, compared with its recommended level of 21 days, urging manufacturers to align wholesale dispatches with retail demand as dealers begin stocking vehicles ahead of the festive season.
