Mahindra beats Tata to second place as car sales grow in September 2026

The Indian passenger vehicle market recorded a year-on-year sales growth of 32.1 percent in September 2026 with 4,27,213 units sold, though this high growth rate stems from low demand in September 2025 caused by buyers waiting for GST 2.0 price cuts.

Top Carmakers

Maruti Suzuki stayed in first place with 1,69,132 units sold, outselling the next three carmakers combined despite its market share dipping to 39.59 percent. Mahindra climbed past Tata into second place by just 89 units with 57,343 vehicles sold, while Tata recorded 57,254 sales and was the only top ten carmaker to face a month-on-month sales decline. Hyundai took fourth place with 50,201 units, Toyota fifth with 28,050 units, and Kia sixth with 26,663 units driven by the Seltos. Skoda Volkswagen Group sold 8,479 units, MG reached 6,475 units, Honda recorded 5,283 units, and Renault rounded out the top ten with 3,410 units.

Fuel Shares And Outlook

Petrol cars reclaimed a slight majority at 41.27 percent share, while alternative-fuel vehicles stood at a combined 41 percent after briefly outselling petrol cars in August. FADA president Sai Giridhar warned that rising vehicle prices risk eroding affordability as the market heads into the festive quarter. Across dealerships, 75.57 percent expect growth in October, 19.46 percent expect a flat market, and 4.98 percent expect a downturn.

Context

Automobile retail data reflects vehicles actually delivered to customers through regional transport offices rather than factory shipments. Monthly sales figures fluctuate based on seasonal festive periods, new model launches, and changes in government tax policies.