Overall Passenger Vehicle retail sales came in at 4,16,555 units in July 2026, up 19.13 per cent YoY. For the first time the sales have crossed the 4-lakh mark in a July, it said.
The alternative fuel share reached 40.59 per cent, when compared to 41.68 per cent for petrol vehicles. The gap has narrowed to 1.09 percentage points, when compared to 13.21 points year ago.
Consumer hesitation around the E20 transition nudged buyers towards CNG, hybrids and EVs, FADA said.
This sets up a potential historic crossover in the coming months, it said.
Among alternative fuels, CNG accounted for 24.67 per cent, Hybrid 8.02 per cent and EVs accounted for 7.90 per cent.
“July 2026 has etched itself into Indian Auto Retail history — for the first time on record, every single category posted its best-ever July, with Two-Wheelers, Three-Wheelers, Commercial Vehicles, Passenger Vehicles, Tractors and Wheeled Construction Equipment all at all-time July highs,” FADA Vice President Sai Giridhar said in a statement.

