[color=hsl(0,0%,0%)]The overall vehicle retail sales in October surged 40.5 per cent year-on-year, marking the strongest month ever for India’s auto retail, according to data released by the Federation of Automobile Dealers Associations (FADA). The growth was led by two-wheelers (+51.76 per cent) and passenger vehicles (+11.35 per cent), both achieving their highest sales in history. Commercial vehicles grew 17.7 per cent, tractors rose 14.2 per cent, while construction equipment was the only laggard, slipping 30.5 per cent.
[color=hsl(0,0%,0%)]Festive Cheer Meets Tax Reform
[color=hsl(0,0%,0%)]The month’s turnaround came after a muted September, when demand dipped during the early GST 2.0 transition. But as Dussehra and Diwali coincided with the new tax regime, the market witnessed what FADA described as a 'hurdle-race-style rebound.'
[color=hsl(0,0%,0%)]The rollout of GST 2.0, which reduced tax rates for entry-level two-wheelers and small cars, played a key role in reviving affordability and boosting first-time buyers. FADA President C. S. Vigneshwar said October 2025 “will be remembered as a landmark month where reforms, festivities, and rural resurgence came together to deliver record-breaking results.”
[color=hsl(0,0%,0%)]Dealers across the country reported record enquiries and high conversions, helped by improved consumer sentiment and affordability. Passenger vehicle inventory eased to 53–55 days, improving by nearly a week compared to September.
[color=hsl(0,0%,0%)]Rural India Takes The Lead
[color=hsl(0,0%,0%)]The standout story of this year’s festive season was the rise of Bharat. Rural India emerged as the engine of growth, supported by good monsoons, higher farm incomes, and infrastructure investments.
[color=hsl(0,0%,0%)]Rural passenger vehicle sales grew three times faster than urban markets while two-wheeler sales were twice as strong as those in cities. This rural dominance, FADA said, signals a structural shift in India’s auto demand pattern.
[color=hsl(0,0%,0%)]42-Day Festive Period: All-Time High
[color=hsl(0,0%,0%)]During the 42-day festive period (from Dussehra to Diwali), total vehicle retails jumped 21 per cent YoY, the highest ever festive sales.
- [color=hsl(0,0%,0%)]Two-wheelers: +22 per cent
- [color=hsl(0,0%,0%)]Passenger vehicles: +23 per cent
- [color=hsl(0,0%,0%)]Commercial vehicles: +15 per cent
- [color=hsl(0,0%,0%)]Tractors: +14 per cent
- [color=hsl(0,0%,0%)]Three-wheelers: +9 per cent
- [color=hsl(0,0%,0%)]Construction equipment: –24 per cent
[color=hsl(0,0%,0%)]Compact cars and entry-level two-wheelers led the surge, with many buyers advancing purchases to take advantage of lower GST rates and festive discounts. Dealers described it as the best festive season in years, with strong traction in commuter bikes, scooters, and compact SUVs.
[color=hsl(0,0%,0%)]Commercial vehicle sales grew on the back of freight demand and infrastructure push, while tractor demand rose with good rural liquidity.
[color=hsl(0,0%,0%)]Fuel Trends
[color=hsl(0,0%,0%)]Petrol and ethanol-powered vehicles dominated sales in both two-wheelers and passenger vehicles. In passenger vehicles, petrol/ethanol accounted for 51.3 per cent, followed by CNG/LPG (22.1 per cent), diesel (16.8 per cent), and EVs (3.2 per cent).
[color=hsl(0,0%,0%)]Two-wheelers saw 95.3 per cent petrol and 4.6 per cent EV share, indicating steady EV traction in the segment.
[color=hsl(0,0%,0%)]Three-wheelers saw over half (54.5 per cent) being electric, while commercial vehicles remained largely diesel (81.7 per cent).
[color=hsl(0,0%,0%)]Cautious Optimism Ahead
[color=hsl(0,0%,0%)]The outlook for the coming months remains positive. GST 2.0 is expected to continue driving affordability under the government’s 'Simpler Tax, Stronger Growth' and ‘Viksit Bharat by 2047’ vision.
[color=hsl(0,0%,0%)]With the marriage season, harvest inflows, and new car launches ahead, dealers expect the momentum to sustain. FADA’s dealer survey shows 64 per cent expect growth in November, 27 per cent expect stable demand, and only 8 per cent foresee a decline.
[color=hsl(0,0%,0%)]For the next three months (Nov–Jan), 70 per cent of dealers expect growth to continue, backed by festive spillovers, steady rural income, and new launches. Liquidity and sentiment remain strong, 75 per cent of dealers report positive sentiment, while nearly 74 per cent rate liquidity as good.
[color=hsl(0,0%,0%)]YTD FY’26 Performance
[color=hsl(0,0%,0%)]Between April and October 2025, total retail sales stood at 1.64 crore units, up 10.7 per cent year-on-year.
- [color=hsl(0,0%,0%)]Two-wheelers: 1.2 crore units (+12.6 per cent)
- [color=hsl(0,0%,0%)]Passenger vehicles: 25.2 lakh units (+5.8 per cent)
- [color=hsl(0,0%,0%)]Commercial vehicles: 5.7 lakh units (+5.2 per cent)
- [color=hsl(0,0%,0%)]Tractors: 5.2 lakh units (+11.2 per cent)
- [color=hsl(0,0%,0%)]Three-wheelers: 7.5 lakh units (+4.1 per cent)
- [color=hsl(0,0%,0%)]Construction equipment: 38,757 units (–10 per cent)
[color=hsl(0,0%,0%)]A Historic Month For Auto Retail
[color=hsl(0,0%,0%)]As India’s auto sector rides this record-breaking festive momentum, October 2025 will likely be remembered as the month when sentiment turned into substance. The combined force of GST 2.0 reforms, robust rural spending, and renewed consumer confidence has not only lifted sales but also redefined the contours of the country’s vehicle market.
[color=hsl(0,0%,0%)]With the marriage season and new launches set to keep showrooms busy, the road ahead looks steady. But the real story lies in how Bharat ‘the rural heart of India’ has taken the driver’s seat in the nation’s automotive growth story. |
