India Auto Retail Logs Second-Best October with 25% MoM Growth, EV Registrations Hit Record High

Indian automobile retail recorded its second-best October on record, registering a 25.05 per cent month-on-month increase over September, according to data and survey findings released by the Federation of Automobile Dealers Associations (FADA).

Total vehicle retail sales reached 31,72,466 units during the month. While registrations declined 23.80 per cent year-on-year compared to October 2025, FADA noted that the contraction was largely optical. The high base of the previous year combined both Navratri and Diwali along with GST rate cuts, whereas major festivals shifted into November this year.

Commenting on the performance, FADA President Sai Giridhar stated that the sequential jump over September is a truer measure of festive demand. He noted that commercial vehicles, three-wheelers, and tractors each posted their best-ever October. However, sharpest falls were observed in Diwali-dependent pockets such as rural two-wheelers, which were down 33.97 per cent against urban areas at 20.77 per cent, and Northern markets, reflecting demand deferred by the festival calendar rather than destroyed demand.

In segment volumes, two-wheelers accounted for 23,21,419 units, showing a 29.67 per cent month-on-month improvement. Commercial vehicle retail reached a historic peak of 115,140 units, up 2.29 per cent year-on-year and 11.19 per cent sequentially, driven by a 28.95 per cent surge in heavy commercial vehicles. Passenger vehicle registrations stood at 507,768 units, marking the third-best October tally.

Dealer channel inventory for passenger vehicles remained steady at 43 to 45 days against record wholesale dispatches from manufacturers. FADA expects inventory to return to the 30-day range by the end of the calendar year, supported by the ongoing Dhanteras-to-Diwali retail wave.

Clean mobility emerged as a key growth driver during the month. Electric vehicle retail reached an all-time peak of approximately 3.55 lakh units, up 44.88 per cent year-on-year, pushing EV penetration to around 11.5 per cent.

Looking ahead, FADA’s Online Members’ Survey indicated that 51.65 per cent of dealers anticipated retail expansion in November, backed by Dhanteras and Diwali falling within the month. Meanwhile, 34.71 per cent forecasted flat volumes, and 13.64 per cent expected de-growth.

"The October auto retail data reflects a shift in consumer demand driven primarily by the festival calendar rather than any structural slowdown. The standout performance in electric vehicle registrations, reaching 11.5% penetration, shows robust adoption of clean mobility solutions. For entrepreneurs and businesses operating in the automotive and EV supply chain, managing channel inventory while capitalizing on deferred festive demand in November will be critical for Q3 performance." — Dr. Shishir Gupta, Founder & CEO, StartupLanes