September 2026 automobile sales in India showed mixed year-on-year performance across major vehicle segments. Passenger vehicles, commercial vehicles, three-wheelers and two-wheelers recorded growth, while tractor volumes declined.
India’s automobile industry recorded varied sales performance in September 2026. Passenger vehicle (PV) volumes increased 19% year on year (YoY), while commercial vehicles (CVs) grew 27%. Three-wheeler and two-wheeler sales increased 19% and 13%, respectively.
Tractor volumes, however, declined 19% YoY. On a month-on-month (MoM) basis, passenger vehicles and three-wheelers recorded low single-digit growth, while commercial vehicles and two-wheelers posted stronger sequential increases.
Tractor Sales Decline 19% in September
Tractor sales declined 19% YoY in September 2026. Mahindra & Mahindra (M&M) tractor volumes fell 23%, while Escorts recorded a 16% decline. VST Tillers was an exception, with volumes increasing 51% YoY.
The decline for M&M and Escorts was linked to a higher base in September 2025 following GST rate cuts. The shift in the festive season to October 2026, patchy monsoon conditions and relatively lower Kharif sowing also affected volumes.
Festive demand and crop harvesting are expected to support tractor volumes ahead. However, the high base effect and potential rate hikes could moderate industry growth in the near term.
The three companies reported combined tractor sales of 69,639 units in September 2026, compared with 85,751 units in September 2025.
Passenger Vehicle Sales Rise 19%
The passenger vehicle segment recorded 19% YoY growth in September 2026. Total sales of the companies covered in the report reached 447,975 units, compared with 377,839 units a year earlier.
Kia and Maruti recorded the strongest YoY growth among the major PV manufacturers covered in the report. Kia sales increased 41%, while Maruti volumes rose 30%.
MG recorded 19% growth, followed by Tata Motors Passenger Vehicles (TMPV) at 15% and M&M at 14%.
Hyundai volumes increased 11% YoY. Toyota and Honda Cars recorded declines of 20% and 16%, respectively.
On a MoM basis, the overall PV segment increased 4%.
The industry is expected to record mid-single-digit volume growth in FY27E, according to the report. The benefits from the previous year’s GST-related changes have moderated as OEMs have taken price increases to offset higher input costs.
Electric vehicle adoption and new model launches could provide support to PV demand. The RBI’s interest-rate decision scheduled for October 7 will also be a key factor to monitor.
Commercial Vehicles Record 27% Growth
Commercial vehicle sales recorded the strongest YoY growth among the major segments covered in the report. Combined CV volumes increased 27% to 109,957 units in September 2026 from 86,628 units in September 2025.
VECV recorded the highest growth among the companies covered, with volumes increasing 58% YoY. Tata Motors Commercial Vehicles (TMCV) grew 31%, while Ashok Leyland recorded 29% growth.
M&M’s CV volumes increased 14%, while Maruti’s commercial vehicle volumes rose 18%.
On a MoM basis, the overall CV segment increased 17%.
Commodity costs remain a key concern for CV manufacturers. Diesel prices, possible interest-rate changes and global uncertainties are also important factors for the segment.
A high base in the second half of the previous year could moderate growth rates. At the same time, increasing e-commerce activity and festive-season demand are expected to support freight and transportation requirements.
Three-Wheeler Sales Increase 19%
Three-wheeler sales increased 19% YoY in September 2026. The companies covered in the report sold 97,863 units, compared with 82,222 units in September 2025.
TVS recorded the strongest growth, with sales rising 57% YoY. M&M’s three-wheeler volumes increased 26%, while Bajaj Auto recorded 5% growth.
On a MoM basis, three-wheeler sales increased 4%.
The segment continues to receive support from the growth of electric three-wheelers and improving urban mobility demand.
Two-Wheeler Sales Rise 13%
Two-wheeler sales increased 13% YoY in September 2026. Total sales of the companies covered reached 2.33 million units, compared with 2.06 million units in September 2025.
Honda recorded 26% YoY growth, followed by TVS at 17% and Hero at 14%.
Eicher and Suzuki recorded more moderate growth of 7% and 3%, respectively.
Bajaj Auto was the only major company in the table to record a decline, with volumes falling 12% YoY. The decline was attributed to supply-related issues and an inventory build-up of older models.
On a MoM basis, the overall two-wheeler segment increased 22%.
September 2026 Automobile Sales: Key Figures
| Segment | Sep-25 | Aug-26 | Sep-26 | YoY | MoM |
|---|---|---|---|---|---|
| Tractors | 85,751 | 40,505 | 69,639 | -19% | 72% |
| Passenger Vehicles | 377,839 | 431,520 | 447,975 | 19% | 4% |
| Commercial Vehicles | 86,628 | 94,163 | 109,957 | 27% | 17% |
| Three-Wheelers | 82,222 | 93,835 | 97,863 | 19% | 4% |
| Two-Wheelers | 2,059,201 | 1,912,650 | 2,327,762 | 13% | 22% |
Company-Wise Automobile Sales
Tractor Sales
| Company | Sep-25 | Sep-26 | YoY |
|---|---|---|---|
| M&M | 64,946 | 50,208 | -23% |
| Escorts | 17,803 | 14,911 | -16% |
| VST Tillers | 3,002 | 4,520 | 51% |
| Total | 85,751 | 69,639 | -19% |
Passenger Vehicle Sales
| Company | Sep-25 | Sep-26 | YoY |
|---|---|---|---|
| Maruti | 144,570 | 188,380 | 30% |
| Hyundai | 51,547 | 57,166 | 11% |
| TMPV | 59,667 | 68,810 | 15% |
| M&M | 56,233 | 64,092 | 14% |
| Toyota | 31,091 | 25,027 | -20% |
| Kia | 22,700 | 32,017 | 41% |
| MG | 6,728 | 8,018 | 19% |
| Honda Cars | 5,303 | 4,465 | -16% |
| Total | 377,839 | 447,975 | 19% |
Commercial Vehicle Sales
| Company | Sep-25 | Sep-26 | YoY |
|---|---|---|---|
| TMCV | 33,148 | 43,487 | 31% |
| M&M | 26,728 | 30,420 | 14% |
| Ashok Leyland | 17,209 | 22,157 | 29% |
| VECV | 6,652 | 10,479 | 58% |
| Maruti | 2,891 | 3,414 | 18% |
| Total | 86,628 | 109,957 | 27% |
Three-Wheeler Sales
| Company | Sep-25 | Sep-26 | YoY |
|---|---|---|---|
| Bajaj Auto | 52,064 | 54,685 | 5% |
| TVS | 17,141 | 26,835 | 57% |
| M&M | 13,017 | 16,343 | 26% |
| Total | 82,222 | 97,863 | 19% |
Two-Wheeler Sales
| Company | Sep-25 | Sep-26 | YoY |
|---|---|---|---|
| Hero | 647,582 | 739,018 | 14% |
| Honda | 505,693 | 636,768 | 26% |
| TVS | 413,279 | 482,073 | 17% |
| Bajaj | 273,188 | 239,771 | -12% |
| Eicher | 113,573 | 121,326 | 7% |
| Suzuki | 105,886 | 108,806 | 3% |
| Total | 2,059,201 | 2,327,762 | 13% |
Outlook for the Indian Automobile Industry
September 2026 data indicates continued growth across most vehicle segments, although the performance remains uneven.
Passenger vehicle demand continues to receive support from new model launches and rising EV adoption. Commercial vehicle demand may benefit from freight movement, e-commerce activity and the festive season.
Two-wheelers also recorded strong sequential growth in September, while three-wheelers continued to benefit from urban mobility demand and vehicle electrification.
The tractor segment remains more sensitive to agricultural conditions, seasonal demand and the high base created by the previous year’s GST-related changes.
Interest rates, commodity prices, fuel costs, global uncertainties and the festive-season demand cycle will remain important factors for India’s automobile industry in the coming months.
Source: Fintoo Wealth Private Limited research report dated October 5, 2026. The report is based on information from public sources and sources believed to be reliable. Its original investment-research disclaimer applies.