Auto Retail Sales Fall 23.8% In October Amid Festive Calendar Shift; EV Sales Hit Record High: FADA

New Delhi, Nov 6 (KNN) India's automobile retail sales declined 23.8 per cent year-on-year (YoY) to 31.72 lakh units in October 2026, largely due to a high base effect and a shift in the festive calendar, according to data released by the Federation of Automobile Dealers Associations (FADA).

October 2025 had benefited from Navratri and Diwali falling in the same month, alongside a surge in demand following the GST 2.0 rate cuts announced on September 22, 2025. This year, Navratri fell in October, while Dhanteras and Diwali shifted to November.

FADA President Sai Giridhar said the year-on-year decline was largely an outcome of the unusually strong base and should be viewed alongside the 25.05 per cent month-on-month increase in retail sales over September to 31,72,466 units.

October remained the second-highest October on record, with commercial vehicles, three-wheelers and tractors each registering their highest-ever October sales.

Two-Wheelers and Passenger Vehicles Lead Decline

Two-wheeler retail sales fell 28.35 per cent YoY to 23.21 lakh units, while passenger vehicle sales declined 14.23 per cent to 5.08 lakh units. However, both segments recorded month-on-month growth, with two-wheelers rising 29.67 per cent and passenger vehicles 18.86 per cent.

Rural two-wheeler sales fell 33.97 per cent, compared with a 20.77 per cent decline in urban markets. FADA attributed the sharper fall partly to the shift in Diwali-related purchases to November, while dealers also reported localised rural stress due to deficient rainfall and a weak kharif season.

Passenger vehicle retail sales were the third-highest for October on record. Utility vehicles and new launches supported demand, although entry-level cars remained relatively weak. Inventory levels in the passenger vehicle channel stood at around 43–45 days, unchanged from September.

Commercial Vehicles and EVs Record Growth

Commercial vehicle retail sales increased 2.29 per cent YoY to 1.15 lakh units, supported by demand for heavier trucks. Heavy commercial vehicle sales rose 28.95 per cent and medium commercial vehicles 21.16 per cent, while light commercial vehicles declined 9.57 per cent.

Three-wheeler sales grew 3.97 per cent to 1.41 lakh units, tractor sales increased 3.10 per cent to 79,285 units, and construction equipment retail sales rose 22.07 per cent to 7,434 units.

Electric vehicle (EV) retail sales reached a record 3.55 lakh units, up 44.88 per cent YoY, taking overall EV penetration to around 11.5 per cent from 6 per cent a year earlier. Electric two-wheelers, three-wheelers, passenger vehicles and commercial vehicles all recorded their highest-ever October sales.

Three-wheelers had an EV penetration of nearly 63 per cent. FADA also noted growing demand for CNG, hybrid and electric vehicles, with alternative-fuel models accounting for 41.83 per cent of passenger vehicle sales, marginally above petrol vehicles at 41.6 per cent.

Giridhar said improved driving ranges and greater price parity with conventional vehicles were supporting EV demand, although vehicle availability had emerged as a constraint in some segments.

(KNN Bureau)