According to the Federation of Automobile Dealers Associations (Fada), retail car sales in India decreased by 23.8% compared to the previous year in October, reaching 3.172 million units. This decline occurred against a high base level, as well as a drop in registrations for two-wheelers and passenger vehicles.
The drop in sales is attributed to the fact that the festivals of Dhanteras and Diwali fall in November this year, whereas last year they were in October, which was accompanied by strong demand accumulated after the reduction of the GST rate.
Breakdown of Sales Decline
During October, retail sales of two-wheelers decreased by 28.35%, totaling 2.321 million units. Passenger car sales dropped by 4.23% to 508 thousand units.
Fada Chairman Sai Giridhar noted that although October is the largest month for retail sales in India, the current year-on-year decline is largely optical. He emphasized that last October was exceptional because it combined Navratri and Deepavali, and also accounted for demand released after the reduction of the GST rate on September 22, 2025. This year, Navratri fell in October, while Dhanteras and Diwali were postponed to November.
Market Segment Dynamics
Fada also reported that retail sales of two-wheelers in rural areas fell by 33.97%, while urban areas saw a decrease of 20.77%. However, electric vehicle sales reached a record high of about 355 thousand units, with penetration increasing to 11.5% compared to 6% the previous year.
In October, sales of alternative fuels, including CNG, hybrid, and electric models, exceeded gasoline car sales. CNG, hybrid, and electric cars accounted for 41.83% of total sales, while gasoline cars made up 41.6%.
Growth in Commercial and Specialized Segments
Meanwhile, retail sales of commercial vehicles grew by 2.29% to 115 thousand units. Sales of three-wheelers and tractors increased by 3.97% and 3.10% respectively, reaching 141 thousand and 79.285 thousand units. There was also an increase in the sales of wheeled construction equipment by 22.07% to 7,434 units.
Giridhar concluded that upon proper analysis, October was still the second-largest month in observation history, especially considering the better performance in October for the commercial vehicle, three-wheeler, and tractor segments, as well as a consistent growth of 25% compared to September, which more accurately reflects festive demand.
Dealers are optimistic about future growth, especially in November, thanks to the upcoming Dhanteras and Diwali festivals. Sales in December and January will depend on pre-New Year promotions, new models, and improvements in the supply of necessary variants.
