India’s automobile sector has entered the festive season on a strong footing, but the sharp jump in September retail sales comes with an important caveat: last year’s GST-related purchase deferrals created an unusually low base.
Automobile retail sales grew 81.8% year-on-year during September 1–23, 2026, according to an early estimate by Choice Institutional Equities based on VAHAN data. Two-wheeler sales surged 91.6%, while passenger vehicle sales more than doubled, rising 102.5%. Commercial vehicle sales grew 51%, three-wheelers increased 30.7%, and tractor sales rose 4.3%.
