Indian PV Retail Market Sees Alternative Fuel Share Overtake Petrol for the First Time in October 2026

According to data from the Federation of Automobile Dealers Associations (FADA), India's passenger vehicle (PV) retail sales reached 5,07,768 units in October 2026. While this represents a 14.23 per cent year-on-year decline against an exceptional base of 5,92,032 units in October 2025, sequential demand surged 18.86 per cent over September 2026 (4,27,213 units). 

FADA noted that the year-on-year drop is base-driven rather than demand-driven. October 2025 captured both Navratri and Diwali plus post-GST 2.0 rate cut demand, whereas Diwali moved to November in 2026, deferring retail volumes. Urban PV sales grew 20.10 per cent month-on-month to capture 61.7 per cent of total volume, while rural sales rose 16.90 per cent for a 38.3 per cent share. Cumulative FY27 YTD (April to October 2026) PV retails stand 16.41 per cent higher at 30,68,353 units.

Shift to Alternative Fuels

October 2026 marked a structural shift in passenger vehicle fuel preferences, with combined alternative powertrains surpassing petrol for the first time. Petrol and ethanol-blend vehicles accounted for 41.60 per cent of retails, down from 48.96 per cent in October 2025. 

In contrast, alternative fuels reached 41.83 per cent, driven by CNG at 24.59 per cent, hybrids at 9.94 per cent, and electric vehicles (EVs) at 7.30 per cent. Diesel comprised the remaining 16.57 per cent market share. EV passenger car retails surged 36.66 per cent during Navratri 2026 to 13,349 units, aided by near-ICE price parity and improved driving range.

OEM Retail Volumes

Maruti Suzuki India led the market with 2,11,996 units, holding a 41.75 per cent market share compared to 42.15 per cent in October 2025. Tata Motors secured second place with 73,449 units (14.47 per cent share), followed by Mahindra & Mahindra with 64,982 units (12.80 per cent share). Hyundai Motor India retailed 58,099 units for an 11.44 per cent share, while Kia India registered 30,799 units (6.07 per cent share). 

Toyota Kirloskar Motor delivered 28,727 units (5.66 per cent share), Skoda Auto VW Group retailed 9,150 units (1.80 per cent share), JSW MG Motor sold 7,082 units (1.39 per cent share), and Honda Cars India recorded 5,455 units (1.07 per cent share). In luxury vehicles, BMW India led with 1,770 units, ahead of Mercedes-Benz Group's 1,682 units.

Near-Term Retail Outlook

Passenger vehicle channel inventory held steady at 43 to 45 days, unchanged from September. FADA expects strong retail off-take during November's Dhanteras and Diwali wave to reduce stock levels toward the 30-day range by calendar year-end. Overall sentiment remains cautiously optimistic, with 51.65 per cent of dealers expecting growth in November 2026 and 50.41 per cent anticipating growth over the November 2026 to January 2027 quarter.

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