# September 2026 Car Retail: Mahindra Edges Tata, EV Share Rises to 8.45% > India's September 2026 car retail reached 4,27,213 units. Mahindra edged Tata by 89 vehicles, while EV share rose to 8.45%, FADA data shows. - **Author**: Prakash - **Published**: 2026-10-08 - **Modified**: 2026-10-08 - **Category**: news - **URL**: https://bestev.in/news/september-2026-car-retail-mahindra-edges-tata-ev-share-rises-to-845-20261008 --- India's passenger vehicle retail market posted its strongest September on record in 2026, with **4,27,213 units sold**, according to the Federation of Automobile Dealers Associations (FADA). Sales rose **32.1% year on year**, while Mahindra edged ahead of Tata to become the country's second-largest carmaker by retail volume. For the electric vehicle market, the headline was another increase in penetration: **EVs accounted for 8.45% of passenger vehicle retail**, compared with 7.63% in August and 5.74% a year earlier. The strong growth needs context. September 2025 was an unusually weak comparison month because customers deferred purchases ahead of anticipated GST 2.0 price cuts. September 2026's result therefore reflects both stronger retail activity and the effect of that low base. ## September 2026 car retail sales: the top 10 | Carmaker | September 2026 retail | MoM change | YoY change | Market share | | --- | ---: | ---: | ---: | ---: | | Maruti Suzuki | 1,69,132 | +2.38% | +30.05% | 39.59% | | Mahindra | 57,343 | +14.13% | +38.93% | 13.42% | | Tata | 57,254 | -1.02% | +28.66% | 13.40% | | Hyundai | 50,201 | +6.84% | +31.46% | 11.75% | | Toyota | 28,050 | +12.85% | +21.56% | 6.57% | | Kia | 26,663 | +14.09% | +45.91% | 6.24% | | Skoda Volkswagen Group | 8,479 | +13.52% | +13.51% | 1.98% | | MG | 6,475 | +11.95% | +13.74% | 1.52% | | Honda | 5,283 | +6.34% | +42.51% | 1.24% | | Renault | 3,410 | +4.12% | +33.10% | 0.80% | *MoM means month on month; YoY means year on year. These figures cover passenger vehicles across powertrains, not electric vehicles alone. Telangana RTO data is excluded from FADA's figures.* ## Maruti leads as Mahindra and Tata finish almost level Maruti Suzuki retained a commanding lead, retailing 1,69,132 vehicles. Its volume exceeded the combined sales of Mahindra, Tata and Hyundai, the next three manufacturers in the rankings. Despite growth of 30.05% over September 2025, Maruti's market share eased from 40.21% to 39.59%. This illustrates how a manufacturer can sell more vehicles while losing share when the overall market grows faster. The closest contest was for second place. **Mahindra sold 57,343 vehicles, just 89 more than Tata's 57,254.** Mahindra's retail rose 14.13% from August, the fastest monthly growth among the top 10, while its share increased to 13.42%. Tata remained close behind with a 13.40% share. Although its sales grew 28.66% year on year, it was the only manufacturer in the top 10 to record a monthly decline, down 1.02%. The 89-unit gap makes the ranking significant but narrow: a single month does not establish a lasting lead. ## Kia records the fastest annual growth Hyundai held fourth place with 50,201 retail sales, followed by Toyota at 28,050 and Kia at 26,663. Kia recorded the strongest year-on-year growth among the top 10 at 45.91%, lifting its share to 6.24%. Honda also expanded sharply, with sales up 42.51% to 5,283 vehicles. MG registered 6,475 vehicles, up 13.74% annually and 11.95% monthly. These are total brand figures and should not be read as electric-only sales. ## EV share rises to 8.45% Electric vehicles gained **0.82 percentage points of market share from August** and **2.71 percentage points from September 2025**. That is a meaningful change in the passenger vehicle market's fuel mix. EVs increased their share even as the broader market recorded a strong September. | Powertrain | September 2026 | August 2026 | September 2025 | | --- | ---: | ---: | ---: | | Petrol/ethanol | 41.27% | 40.85% | 47.18% | | Diesel | 17.74% | 17.21% | 17.76% | | CNG/LPG | 23.11% | 25.28% | 22.02% | | Hybrid | 9.44% | 9.04% | 7.30% | | EV | 8.45% | 7.63% | 5.74% | *Shares are rounded and may not add up to exactly 100%.* Hybrid share also rose, reaching 9.44%. Together, hybrids and EVs accounted for **17.89% of retail**, compared with 16.67% in August and 13.04% a year earlier. Petrol/ethanol remained the largest individual category at 41.27%. The combined share of CNG/LPG, hybrids and EVs was 41.00%, leaving a gap of only 0.27 percentage points. CNG/LPG share fell from 25.28% in August to 23.11%, although it remained above its year-earlier level. Diesel share was broadly unchanged annually at 17.74%. For more electric-market context, read BestEV's [September 2026 electric car registration report](https://bestev.in/news/september-2026-electric-car-registrations-hit-35948-in-india-20261002). ## Why October will be a tougher test October 2025 recorded more than 4,66,800 passenger vehicle retail sales, setting a much higher comparison base than September 2025. October 2026 will therefore provide a useful test of whether demand can sustain growth against a stronger prior-year result. Affordability remains central to the outlook. FADA has flagged the risk that subsequent vehicle price increases could reduce the benefit customers received from GST 2.0. Its dealer survey nevertheless points to cautious optimism: 75.57% of dealers expect growth in October, 19.46% expect a flat market and 4.98% anticipate a decline. These are expectations, rather than confirmed sales outcomes. ## What this means for India's EV market BestEV's analysis: the most useful signal for electric-car adoption is the increase in EV share, alongside the overall retail growth. A rising share shows EVs taking a larger slice of passenger vehicle purchases. The broader manufacturer rankings tell a different story: Mahindra's second-place finish reflects its total passenger vehicle retail, and does not by itself establish leadership in electric cars. For buyers, the changing fuel mix makes ownership-cost comparisons increasingly relevant. Charging access, daily distance, battery warranty and local service support remain practical factors to assess. Use our [EV vs petrol cost calculator](https://bestev.in/tools/ev-vs-petrol-calculator) to compare running costs for your usage. September delivered a record for the month, a close Mahindra-Tata contest and higher EV penetration. October's stronger comparison base will help show how much of that momentum can carry forward. *Data: FADA, as reported in [Autocar Professional's September 2026 car retail report](https://www.autocarpro.in/news/september-2026-car-retail-sales-135109). Cover image: AI-generated illustration of a generic car showroom and electric SUV; it does not depict specific production models.* --- - [More news articles](https://bestev.in/news/category/news) - [All articles](https://bestev.in/news)