The Indian automobile retail sector marked a historic achievement in the financial year ending March 2026, with total sales reaching 2,96,71,064 units, reflecting a 13.30% year-on-year growth. This growth was spurred by robust demand across nearly all vehicle categories, particularly in the latter half of the year. Two-wheeler sales accounted for 2,14,20,386 units, an increase of 13.40%, while passenger vehicles saw sales of 47,05,056 units (+13.00%). Tractors were notable performers, crossing 10,50,077 units sold, a growth of 18.95%. The year was characterized by a two-phase trajectory: a muted first five months due to uncertainties surrounding the Goods and Services Tax (GST) 2.0, followed by a surge in sales post-implementation in September 2025. FADA President C S Vigneshwar emphasized that this year represents a significant turning point for the industry, with five out of six vehicle categories achieving all-time high sales. The transition towards electric vehicles is also notable, with over 60% of the three-wheeler market now consisting of electric models. The inventory levels for passenger vehicles improved significantly, reducing from 52 days to 28 days by the end of FY'26, indicating a healthier market balance.