THEBUSINESSBYTES BUREAU

NEW DELHI, NOVEMBER 6, 2026

India's automobile retail sales declined 23.8 per cent year-on-year to 31.72 lakh units in October, primarily due to a high base effect and a shift in the festive calendar, even as electric vehicle registrations touched an all-time high, according to the Federation of Automobile Dealers Associations (FADA).

The overall decline was largely driven by a sharp contraction in two-wheeler and passenger vehicle sales, with the festive demand pattern differing significantly from last year. While Navratri and Diwali fell in October in 2025, this year Dhanteras and Diwali shifted to November, impacting the month-on-month distribution of vehicle registrations.

Two-wheeler retail sales plunged 28.35 per cent to 23.21 lakh units in October, while passenger vehicle registrations declined 4.23 per cent to around 5.08 lakh units, FADA said.

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

He noted that October last year had witnessed an exceptional combination of Navratri and Deepawali, coupled with the release of pent-up demand following the GST 2.0 rate cuts announced on September 22, 2025. This year, however, the major festive buying occasions of Dhanteras and Diwali shifted to November.

Despite the headline decline, the electric vehicle segment delivered a remarkable performance, with retail sales touching an all-time high of approximately 3.55 lakh units during October. EV penetration increased sharply to 11.5 per cent from 6 per cent in the corresponding month last year, indicating growing consumer acceptance of electric mobility.

Significantly, alternative-fuel vehicles, comprising CNG, hybrid and electric models, collectively accounted for 41.83 per cent of sales in October, marginally surpassing petrol-powered vehicles, which had a share of 41.6 per cent.

The rural market witnessed a steeper contraction in two-wheeler registrations, which declined 33.97 per cent, compared with a 20.77 per cent fall in urban areas, highlighting the uneven impact of the high base across markets.

However, several commercial and agricultural vehicle categories bucked the overall downward trend. Commercial vehicle retail sales increased 2.29 per cent to 1.15 lakh units, while three-wheeler registrations grew 3.97 per cent to 1.41 lakh units. Tractor sales also rose 3.10 per cent to 79,285 units during the month.

Construction equipment sales, including wheelers, registered a robust growth of 22.07 per cent to 7,434 units.

Giridhar said October nevertheless remained the second-highest October on record, with commercial vehicles, three-wheelers and tractors each registering their best-ever October performance. He added that the 25 per cent sequential growth over September offered a more accurate indication of festive-season demand than the year-on-year comparison.

Looking ahead, FADA expressed optimism about the automobile retail outlook, particularly for November, when Dhanteras and Diwali are expected to drive a significant surge in vehicle purchases.

With Dhanteras falling on November 6 and Diwali on November 8 this year, the industry is anticipating a substantial festive buying wave during the month. The association said festive-season registration trends so far have been encouraging.

Retail performance in December and January, however, will depend on year-end promotional offers, new vehicle launches and improved availability of consumer-preferred models and variants, it added.