Auto retail sales fall 23.8% to 31.72 lakh units in Oct: FADA

India’s automobile retail sales declined 23.80 per cent year-on-year to 31,72,466 units in October 2026, despite registering a strong 25.05 per cent month-on-month recovery over September, according to data released by the Federation of Automobile Dealers Associations (FADA).
Despite the annual contraction, October recorded the second-highest retail sales for the month on record, indicating continued underlying demand across several vehicle categories. Commercial vehicles, three-wheelers and tractors registered their highest-ever October sales, while electric vehicle (EV) retail also touched a record high.FADA attributed the sharp year-on-year decline primarily to differences in the festive calendar. In October 2025, Navratri and Diwali coincided with GST rate cuts, providing a significant boost to automobile purchases. This year, however, major festive celebrations shifted to November, resulting in a comparatively weaker October base for annual comparisons, according to agency reports.
The outlook for November remains encouraging, with 51.65 per cent of dealers expecting sales growth, according to FADA’s Online Members’ Survey. Another 34.71 per cent anticipate sales to remain stable, while 13.64 per cent foresee a decline. Dhanteras and Diwali are expected to provide fresh momentum to vehicle purchases.Two-wheeler retail sales stood at 23,21,419 units, registering a 29.67 per cent increase over September. However, the segment continued to face pressure on an annual basis, particularly in rural markets, where sales declined 33.97 per cent year-on-year, compared with a 20.77 per cent contraction in urban markets.
Passenger vehicle registrations reached 5,07,768 units, making it the third-best October on record. Demand for utility vehicles and newly launched models continued to support the segment, although entry-level cars witnessed relatively subdued demand. Despite strong wholesale dispatches by manufacturers, dealer inventory remained elevated at 43–45 days, indicating the need for sustained retail momentum to improve stock levels.The commercial vehicle segment emerged as a bright spot, with retail sales touching a record 1,15,140 units, up 2.29 per cent year-on-year and 11.19 per cent over September. Heavy commercial vehicles led the growth, recording a sharp 28.95 per cent increase, reflecting stronger demand across the segment.Electric mobility also continued to gain traction, with EV retail sales reaching an all-time high of approximately 3.55 lakh units, registering 44.88 per cent year-on-year growth. Electric vehicles accounted for around 11.5 per cent of total automobile retail sales during the month, highlighting the growing adoption of cleaner mobility solutions.
FADA President Sai Giridhar said the year-on-year decline should be viewed in the context of the changed festive calendar, adding that month-on-month growth over September offered a more meaningful indication of underlying festive demand.He expressed optimism that the upcoming festive period would support further expansion in automobile retail sales and help reduce passenger vehicle inventory levels to around 30 days by the end of the calendar year.