India’s Auto Retail Posts Second-Best October as Sales Rise 25% From September

India recorded its second-best October for vehicle retail even as sales fell nearly 24% from a year earlier. Dealers sold 31,72,466 vehicles in October 2026, up 25.05% from September and down 23.80% from October 2025, according to the Federation of Automobile Dealers Associations (FADA).

The two comparisons reflect a shift in the festive calendar, FADA said. October 2025 benefited from both Navratri and Diwali demand as well as GST rate cuts. This year, Dhanteras and Diwali moved into November.

Rural Two-Wheelers Take the Biggest Hit

Two-wheeler sales rose 29.67% from September to 23,21,419 units. The year-on-year comparison was weaker, especially in rural markets, where sales fell 33.97%, compared with 20.77% in urban areas. FADA also flagged steep declines in northern markets.

“To our mind this is the signature of demand deferred by the festival calendar, not demand destroyed,” FADA President Sai Giridhar said.

Commercial Vehicles Set an October Record

Commercial vehicles, three-wheelers and tractors each posted their best October on record. Commercial vehicle sales reached 1,15,140 units, up 2.29% year on year and 11.19% from September. FADA attributed the gain to a 28.95% surge in heavy commercial vehicle sales.

Electric vehicle retail also reached an all-time high of about 3.55 lakh units, up 44.88% year on year. FADA put EVs’ share of overall vehicle retail at around 11.5%.

Car Stocks Hold at 43–45 Days

Passenger vehicle registrations reached 5,07,768 units, the third-highest October tally on record. Giridhar said utility vehicles and new launches supported demand, while entry-level cars remained weak.

Passenger vehicle inventory at dealerships stayed at 43–45 days, unchanged from September, even as manufacturers dispatched a record volume to dealers. FADA expects festive buying to bring stocks closer to 30 days by the end of the calendar year.

Just Over Half of Dealers Expect November Growth

In FADA’s online members’ survey, 51.65% of dealers expected retail sales to grow in November, when both Dhanteras and Diwali fall. The rest were split between those expecting flat sales, at 34.71%, and those expecting a decline, at 13.64%.

With inputs from ANI