NEW DELHI–India’s automobile retail sales reached 3.17 million vehicles in October 2026, rising 25.05% from September, while electric vehicle sales climbed to an all-time high, according to data released Friday by the Federation of Automobile Dealers Associations (FADA).
Total vehicle registrations stood at 3,172,466 units during the month, representing a 23.8% decline from October 2025. However, the industry association attributed much of the annual decline to differences in the timing of major festivals and an unusually strong comparison period last year.
Electric vehicles emerged as the strongest-performing segment, with sales reaching a record 355,000 units, an increase of 44.88% from a year earlier.
EVs accounted for approximately 11.5% of overall vehicle sales, compared with about 6% in October 2025. Electric two-wheelers, three-wheelers, passenger vehicles and commercial vehicles each recorded their highest October sales.
FADA said the year-over-year comparison was distorted by the timing of India’s festive season. In 2025, both Navratri and Diwali fell in October, boosting purchases alongside demand generated by reductions in Goods and Services Tax rates.
This year, Navratri took place in October, while Dhanteras and Diwali shifted to November, moving a significant portion of festive vehicle purchases into the following month.
Despite the annual decline, October 2026 was the second-strongest October on record for overall vehicle retail sales.
Commercial vehicles, three-wheelers and tractors each registered their highest October sales.
“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,” said FADA President Sai Giridhar.
Two-wheelers remained the largest vehicle category, with 2,321,419 units sold during October.
Sales declined 28.35% from the previous year but increased 29.67% from September, reflecting improving demand ahead of the Diwali shopping period.
Giridhar said two-wheeler sales were particularly affected by the timing of festivals because the segment is highly dependent on rural consumers and seasonal purchases.
Dealers reported strong customer traffic during the festive period, although demand remained uneven in rural areas affected by insufficient rainfall and weaker agricultural production.
The association also noted that price increases introduced by manufacturers had reduced some of the benefits consumers received from last year’s tax cuts.
Commercial vehicles recorded 115,140 retail sales, representing a 2.29% annual increase and an 11.19% improvement from September.
The segment posted its strongest October performance on record, supported by demand for larger trucks.
Heavy commercial vehicle sales increased 28.95%, while medium commercial vehicle sales climbed 21.16%. Light commercial vehicle sales, however, declined 9.57%.
Passenger vehicle sales totaled 507,768 units, down 14.23% from October 2025 but up 18.86% from September.
The segment recorded its third-highest October sales, supported by continued demand for utility vehicles and new model launches.
Entry-level passenger cars, however, continued to experience relatively weak demand.
FADA also expressed concern about elevated vehicle inventories at dealerships following substantial shipments from automobile manufacturers.
Passenger vehicle inventory levels remained at approximately 43 to 45 days of supply, largely unchanged from September.
“Our pressing concern is inventory: against record wholesale dispatches from manufacturers, Passenger Vehicle channel stock held at around 43–45 days — unchanged from September. With the Dhanteras-to-Diwali retail wave now under way, we expect inventory to fall back in 30 days range by end of CY,” Giridhar said.
Other vehicle categories also reported annual growth despite the challenging comparison with October 2025.
Three-wheeler sales increased 3.97%, tractor sales rose 3.10%, and construction equipment sales advanced 22.07%.
FADA expects the ongoing festive shopping period to support additional vehicle purchases in November, potentially helping dealerships reduce excess inventory before the end of the calendar year. (Source: IANS)
