India’s automobile retail sales declined 23.80 per cent year-on-year to 31,72,466 units in October 2026, despite registering a 25.05 per cent month-on-month increase over September, according to data released by the Federation of Automobile Dealers Associations (FADA).
Despite the annual decline, October recorded the second-highest retail sales for the month on record, with commercial vehicles, three-wheelers and tractors registering their highest-ever October sales.
FADA attributed the year-on-year contraction largely to a shift in the festive calendar. In October 2025, both Navratri and Diwali coincided with GST rate cuts, boosting sales, while major festivals fell in November this year.
According to FADA’s Online Members’ Survey, 51.65 per cent of dealers expect sales to grow in November, supported by Dhanteras and Diwali. Meanwhile, 34.71 per cent anticipate stable sales, while 13.64 per cent expect a decline.
Two-wheeler retail sales stood at 23,21,419 units, registering a 29.67 per cent increase over September. However, rural two-wheeler sales declined 33.97 per cent year-on-year, compared to a 20.77 per cent fall in urban markets.
Passenger vehicle registrations reached 5,07,768 units, making it the third-best October on record. Dealer inventory, however, remained elevated at 43–45 days, despite strong wholesale dispatches by manufacturers. Utility vehicles and new launches continued to support demand, while entry-level cars remained relatively subdued.
Commercial vehicle retail sales touched a record 1,15,140 units, registering a 2.29 per cent year-on-year growth and an 11.19 per cent increase over September. Heavy commercial vehicles led the segment with a 28.95 per cent surge.
Electric vehicle (EV) retail also emerged as a key growth driver, reaching an all-time high of approximately 3.55 lakh units, up 44.88 per cent year-on-year. EV penetration stood at around 11.5 per cent during the month.
FADA President Sai Giridhar said the year-on-year decline should be viewed in the context of the changed festive calendar, adding that the sequential growth over September was a more accurate indicator of festive demand.
He expressed optimism that the upcoming festive season would support retail expansion and help bring passenger vehicle inventory levels down to around 30 days by the end of the calendar year.
-ANI
