Mahindra has edged past Tata Motors to become India’s second-largest carmaker by retail sales in September 2026, according to the latest Federation of Automobile Dealers Associations (FADA) data. The gap was just 89 units, with Mahindra retailing 57,343 vehicles compared with Tata Motors’ 57,254.
The bigger story is the strength of the overall passenger vehicle market. India recorded 4,27,213 passenger vehicle retail sales in September 2026, a 32.10% year-on-year increase and a 6.17% rise over August. It was the best September on record for passenger vehicle retail sales.
Key Highlights
- India recorded 4,27,213 passenger vehicle retail sales in September 2026.
- Mahindra sold 57,343 units, beating Tata Motors by just 89 units.
- Mahindra’s 13.42% market share was ahead of Tata’s 13.40%.
- Mahindra’s sales increased 38.93% year-on-year, compared with Tata’s 28.66% growth.
- Maruti Suzuki remained the market leader with 1,69,132 units and a 39.59% share.
- Electric cars accounted for 8.45% of passenger vehicle retail sales in September, up from 5.74% a year earlier.
September 2026 Car Retail Sales: Mahindra Moves to Second
The September rankings show how close the competition has become behind Maruti Suzuki.
| Rank | Carmaker | September 2026 Sales | YoY Growth | Market Share |
|---|---|---|---|---|
| 1 | Maruti Suzuki | 1,69,132 | 30.05% | 39.59% |
| 2 | Mahindra | 57,343 | 38.93% | 13.42% |
| 3 | Tata Motors | 57,254 | 28.66% | 13.40% |
| 4 | Hyundai | 50,201 | 31.46% | 11.75% |
| 5 | Toyota | 28,050 | 21.56% | 6.57% |
| 6 | Kia | 26,663 | 45.91% | 6.24% |
| 7 | Skoda Volkswagen Group | 8,479 | 13.51% | 1.98% |
| 8 | JSW MG Motor | 6,475 | 13.74% | 1.52% |
| 9 | Honda | 5,283 | 42.51% | 1.24% |
| 10 | Renault | 3,410 | 33.10% | 0.80% |
The figures are based on FADA retail data and exclude Telangana RTO registrations.
Mahindra’s Strong September
Mahindra’s second-place finish is notable because the company increased its retail sales by 38.93% year-on-year. Its 57,343-unit result also represented a 14.13% increase over August.
The company increased its market share from 12.76% in September 2025 to 13.42% in September 2026. It was also the only manufacturer among the top 10 to move up a position in the monthly ranking.
Mahindra’s SUV-heavy portfolio remains central to its retail performance. Models such as the Scorpio range, XUV700, XUV 3XO, Thar and other utility vehicles give the company a strong presence in India’s fastest-growing passenger vehicle categories.
Tata Misses Second Place by 89 Units
Tata Motors finished September with 57,254 retail sales, only 89 units behind Mahindra. Its sales were still up a healthy 28.66% year-on-year, but the company recorded a marginal 1.02% month-on-month decline.
Tata’s market share stood at 13.40%, down from 13.76% in September 2025. The result therefore represents more of a close contest than a major change in the pecking order. A difference of just 89 units means even a small change in registrations could reverse the positions in a subsequent month.
Maruti Suzuki Continues to Dominate
Maruti Suzuki remained well ahead of every other manufacturer, with 1,69,132 retail sales in September.
Its 39.59% market share means that roughly four out of every 10 passenger vehicles retailed during the month carried the Maruti Suzuki badge. Sales grew 30.05% compared with September 2025, while volumes were also 2.38% higher than August.
The gap between Maruti and the rest of the market remains substantial. In fact, Maruti’s September retail volume was greater than the combined sales of Mahindra, Tata and Hyundai.
Hyundai Holds Fourth, Kia Records Strong Growth
Hyundai remained fourth with 50,201 units and an 11.75% market share. Its retail sales increased 31.46% year-on-year and 6.84% month-on-month.
Kia was one of the strongest performers among the larger manufacturers. It retailed 26,663 vehicles, up 45.91% year-on-year, giving it a 6.24% market share. The second-generation Seltos has been an important contributor to Kia’s recent momentum.
EVs and Hybrids Continue to Gain Ground
September’s retail data also highlights the changing powertrain mix in India.
Petrol and ethanol vehicles accounted for 41.27% of passenger vehicle retail sales. CNG and LPG vehicles contributed 23.11%, hybrids 9.44%, and EVs 8.45%.
That puts alternative powertrains collectively at around 41% of the market, almost level with petrol and ethanol. EV share increased from 5.74% in September 2025 to 8.45% in September 2026.
Tata Motors remained India’s largest electric passenger vehicle seller in September with 14,791 units, while Mahindra ranked second with 7,780 EVs.
What the September Retail Numbers Mean
The headline Mahindra versus Tata battle is likely to attract the most attention, but the wider market numbers are equally significant.
Passenger vehicle retail sales for April to September 2026 reached 25,44,187 units, up 24.48% from the corresponding period of the previous financial year. Both urban and rural markets recorded strong year-on-year growth in September.
However, the September growth rate needs some context. The year-ago period was relatively weak as buyers delayed purchases around the implementation and expectations surrounding GST changes. That creates a favourable base for year-on-year comparisons.
FADA also reported passenger vehicle inventory of around 43 to 45 days, significantly above its recommended 21-day level. Higher inventory could lead to stronger discounts and promotional activity if demand does not keep pace during the festive period.
Pros and Cons of the September Market
Pros
- Passenger vehicle retail sales reached a record September level.
- Mahindra and Tata are locked in an extremely close battle for second place.
- EV penetration continued to increase.
- Major manufacturers recorded strong year-on-year growth.
- Festive-season demand could provide further support.
Cons
- The high year-on-year growth rate is partly influenced by a weak September 2025 base.
- Passenger vehicle inventory remains elevated.
- The Mahindra-Tata gap is so narrow that rankings can change quickly.
- Petrol still remains the single largest powertrain category.
FAQs
Which carmaker sold the most cars in September 2026?
Maruti Suzuki was India’s best-selling carmaker in September 2026, with 1,69,132 passenger vehicle retail sales and a 39.59% market share.
Did Mahindra beat Tata in September 2026 car retail sales?
Yes. Mahindra retailed 57,343 vehicles, while Tata Motors recorded 57,254 units. Mahindra’s advantage was just 89 units.
What was Mahindra’s market share in September 2026?
Mahindra held a 13.42% share of India’s passenger vehicle retail market in September 2026.
What was Tata Motors’ market share in September 2026?
Tata Motors had a 13.40% passenger vehicle retail market share in September 2026, only 0.02 percentage points behind Mahindra.
How many cars were sold in India in September 2026?
India recorded 4,27,213 passenger vehicle retail sales in September 2026, representing 32.10% year-on-year growth.
What was India’s EV car share in September 2026?
Electric passenger vehicles accounted for 8.45% of passenger vehicle retail sales in September 2026, compared with 5.74% in September 2025.
Conclusion
The September 2026 car retail sales ranking gives Mahindra a narrow but significant victory over Tata Motors. Its 89-unit lead is too small to suggest a permanent shift in the market, but Mahindra’s stronger 38.93% year-on-year growth and 13.42% market share show that its SUV-led strategy continues to deliver.
Tata remains firmly in the fight, while Hyundai is within striking distance of both if its recent growth continues. With the festive season ahead and EV adoption continuing to rise, the next few months could produce further changes in India’s carmaker rankings.
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