September 2026 car retail sales: Mahindra beats Tata to second place

According to data released by the Federation of Automobile Dealers Associations (FADA), the Indian passenger vehicle market experienced a strong year-on-year (YoY) sales growth of 32.1 percent in September 2026, with a total of 4,27,213 units sold. While the YoY uptick looks very impressive at face value, the reason behind it is a slowdown in demand during September 2025 due to anticipation of imminent price cuts as part of GST 2.0.

Note: Telangana RTO is not included in FADA sales data.

Top 10 bestselling carmakers in September 2026

1. Maruti Suzuki

1,69,132 units sold, up 30.05 percent YoY

Kicking off the top 10 is market leader Maruti Suzuki, which held on to first place and saw YoY growth in September 2026, although its market share dipped from 40.21 percent in September 2025 to 39.59 percent last month. Still, in terms of overall volume, Maruti Suzuki outsold the next three carmakers combined. The 2.38 percent MoM sales increase is also impressive given the scale of Maruti Suzuki’s volumes. No new Maruti launches are currently known for October 2026, but the carmaker is fresh off the Baleno facelift’s launch.

2. Mahindra

57,343 units sold, up 38.93 percent YoY

Compared to last month’s sales rankings, Mahindra was the only carmaker to see an upward movement in its rank. Specifically, Mahindra beat Tata to second place by an ever-so-slight margin of 89 units. It also recorded the highest MoM growth among the top 10 and the highest increase in market share – from 12.76 percent last September to 13.42 percent in September 2026. At the moment, Mahindra has not announced any new launches for October, but it did launch the Thar OG (3-door facelift) last month.

3. Tata

57,254 units sold, up 28.66 percent YoY

As mentioned above, Tata slipped from second place in August 2026 to third place in September, though its overall volumes were extremely close to Mahindra’s and YoY sales growth was healthy too. That said, Tata’s market share slipped a little, from 13.76 percent in September 2025 to 13.40 percent last month, and it was the only carmaker to witness a MoM sales decline as well. Most recently, Tata launched the Aeris compact sedan, replacing the Tigor.

4. Hyundai

50,201 units sold, up 31.46 percent YoY

Hyundai remained in fourth place in the September 2026 sales rankings, recording healthy MoM and YoY upticks. However, its market share slid from 11.81 percent in September 2025 to 11.75 percent in September 2026. This month, Hyundai is likely to launch the Bayon midsize SUV, and its impact on the October 2026 sales charts should be interesting to see.

5. Toyota

28,050 units sold, up 21.56 percent YoY

Like last month, Toyota was fifth in September 2026. Interestingly, Toyota registered one of the highest MoM upticks among the carmakers listed here. At the same time, however, the Japanese carmaker’s market share dipped from 7.14 percent in September 2025 to 6.57 percent last month. In October, Toyota is expected to debut the facelifted Glanza, changes for which are likely to mirror those seen in the Maruti Baleno facelift.

6. Kia

26,663 units sold, up 45.91 percent YoY

Thanks to the continued popularity of the second-gen Seltos, Kia recorded the highest YoY sales uptick among the top 10 carmakers in September 2026, while MoM growth was the second-highest – falling just shy of Mahindra’s. Kia’s market share also grew considerably, from 5.65 percent in September 2025 to 6.24 percent in September 2026. While Kia is fresh off a major launch – the Sorento – the Korean carmaker is likely to announce prices for the Carnival hybrid, though the luxury MPV is not expected to be a major volume driver.

7. Skoda Volkswagen Group

8,479 units sold, up 13.51 percent YoY

Skoda Auto Volkswagen India Private Limited (SAVWIPL) held on to seventh place in September 2026 and even saw a decent 13.52 percent MoM increase in sales. Notably, its YoY growth is nearly identical to the MoM one. Its market share declined from 2.29 percent last September to 1.98 percent in September 2026. As for launches in October, Skoda is fresh off the Slavia facelift’s price reveal, which could rejuvenate some interest in the midsize sedan space.

8. MG

6,475 units sold, up 13.74 percent YoY

Remaining in eighth place, MG saw relatively moderate MoM and YoY sales growth in September 2026. However, its market share slid from 1.76 percent in September 2025 to 1.52 percent last month. MG launched the Hector Tomahawk EV and PHEV in August and doesn’t have any new launches lined up for October. That said, deliveries of the Tomahawk PHEV are slated to start in November.

9. Honda 

5,283 units sold, up 42.51 percent YoY

In the penultimate position comes Honda, which saw a mild 6.34 percent MoM increase in sales but a whopping 42.51 percent YoY surge. The Japanese carmaker’s market share also grew from 1.15 percent in September 2025 to 1.24 percent in September 2026. Honda launched the Elevate facelift in October and is expected to bring the Prelude coupe to India in the months to come.

10. Renault

3,410 units sold, up 33.10 percent YoY

Rounding out the top 10 is Renault, which recorded the mildest MoM sales increase (4.12 percent) last month. However, its 33.1 percent YoY growth is quite impressive and can largely be credited to the new Duster, which went on sale in March 2026. Renault’s market share also saw a slight increase – from 0.79 percent in September 2025 to 0.8 percent in September 2026. Coming to new launches, Renault announced prices for the Triber turbo in late September and is set to launch the Duster hybrid in October.

Petrol cars regain sales majority over alternative fuels, albeit slightly

A big talking point in FADA’s August 2026 sales data was that alternative-fuel cars (CNG, hybrid, electric) collectively outsold petrol cars for the first time. However, the trend did not continue in September 2026, as the share of petrol cars climbed to 41.27 percent, while alternative-fuel cars stood at a combined 41 percent.

Shares for hybrids and EVs rose MoM in September, but CNG cars saw a downturn. Be that as it may, the difference between petrol and alternative-fuel cars is still very slight, and the buyer share for the latter category is still higher when compared to September 2025’s numbers.

October 2026 will tell the real story for the Indian PV market, says FADA

Keeping in mind that September 2026’s YoY growth was driven by a favourable base effect, FADA president Sai Giridhar remarked, “One year on from GST 2.0, affordability remains the single engine of this cycle — and dealers now flag further price increases eroding that very affordability as their foremost risk for the quarter ahead. Protecting the GST gain is, to our mind, the key to converting the festive season into durable growth.”

Over 4,66,800 cars were sold in October 2025 thanks to GST 2.0 and festive demand, making it the best-ever October for the Indian PV market. With several price increases implemented by major carmakers since the introduction of GST 2.0, October 2026 is now shaping up to be the real test of the Indian PV market. It will also be the first month after the one-year anniversary of GST 2.0, thereby providing a clean slate to compare like-for-like YoY growth numbers.

According to FADA, 75.57 percent of dealers expect growth, 19.46 percent anticipate a flat market and 4.98 percent are bracing for a downturn in sales during October 2026. The overall outlook among dealers is ‘cautiously optimistic’.