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

India's automobile retail sales declined 23.8% year-on-year to over 31.72 lakh units in October this year on a high base, with a decline in two-wheeler and passenger vehicle registrations, according to data from the Federation of Automobile Dealers Associations (FADA).

The drop reflects Dhanteras and Diwali falling in November this year while both Navratri and Diwali were in October last year, with strong pent-up demand post the GST cut.

Two-wheeler retail sales fell 28.35% to 23.21 lakh units while passenger vehicle sales dropped 4.23% to 5.08 lakh units during the month.

"October is India's largest retail month of the year, and this year it must be read with the calendar firmly in mind," said FADA President Sai Giridhar, adding that the year-on-year decline is almost entirely optical.

"Last October was an exceptional month that carried both Navratri and Deepawali together, over and above the pent-up demand released after the GST 2.0 rate cuts of 22nd September 2025; this year Navratri fell in October while Dhanteras and Diwali moved into November,” he said.

FADA noted rural two-wheeler retail sales fell 33.97% while it declined 20.77% in the urban areas. Electric vehicle sales were at an all-time high of around 3.55 lakh units, with penetration increasing to 11.5% compared to 6% in the year-ago period.

Sales of alternative fuel vehicles, which include CNG, hybrid and electric vehicle models, were higher than petrol vehicles in October.

Sales of CNG, hybrid and electric vehicles accounted for 41.83% while petrol vehicle sales accounted for 41.6%.

Meanwhile, retail sales of commercial vehicles grew 2.29% to 1.15 lakh units, while those of three-wheelers and tractors grew 3.97% to 1.41 lakh units and 3.10% to 79,285 units, respectively.

Sales of construction equipment with wheelers also registered 22.07% to 7,434 units.

"Seen correctly, this was still the second-highest October on record - - with Commercial Vehicles, three-wheelers and tractors each posting their best-ever October - - and the 25 per cent sequential jump over September is the truer measure of festive demand,” Giridhar said.

Going forward, dealers are optimistic about growth, particularly for November because of Dhanteras and Diwali.

December and January sales will depend on year-end offers, new launches and better supply of required variants.

“The decisive support is the festival calendar itself: with Dhanteras on 6th November and Diwali on 8th November, the single biggest retail wave of the year falls squarely within the month, and the festive-season registration tracking so far is encouraging,” the association added.