India automobile retail sales reached 31,72,466 units in October 2026, rising 25.05 per cent month-on-month but declining 23.80 per cent year-on-year, according to the Federation of Automobile Dealers Associations (FADA).
The year-on-year decline largely reflects a high base in October 2025, when Navratri and Diwali coincided. Last year’s festive demand also followed the release of pent-up purchases after GST 2.0 rate cuts.
This year, Navratri fell in October, while Dhanteras and Diwali shifted to November. FADA said October 2026 was still the second-highest October on record.
Electric vehicle (EV) retail sales provided the strongest growth, reaching an all-time high of around 3.55 lakh units. This represented a 44.88 per cent increase year-on-year. EV penetration rose to approximately 11.5 per cent from around 6 per cent a year earlier.
EV retail sales hit record across vehicle categories
FADA reported record October retail sales for electric two-wheelers, three-wheelers, passenger vehicles and commercial vehicles.
The overall industry also recorded its highest-ever October sales in commercial vehicles, three-wheelers and tractors.
FADA President Sai Giridhar said the 25 per cent sequential increase over September offered a more representative picture of festive demand.
Two-wheeler sales rise 29.67% month-on-month
Two-wheeler retail sales stood at 23,21,419 units in October, declining 28.35 per cent year-on-year. However, sales increased 29.67 per cent compared with September.
Giridhar attributed the annual decline partly to the festival calendar, as October 2025 captured the full Diwali sales period.
Dealers reported healthy festive footfalls, although localised rural stress remained a concern. Areas affected by deficient rainfall and a weak kharif season faced softer demand.
FADA also cited the fading impact of last year’s GST-related price advantage following subsequent manufacturer price increases.
Commercial vehicles record best-ever October
Commercial vehicle retail sales grew 2.29 per cent year-on-year to 1,15,140 units. Sales were also up 11.19 per cent over September.
Heavy commercial vehicles led the growth, with HCV sales increasing 28.95 per cent. Medium commercial vehicles grew 21.16 per cent, while light commercial vehicles declined 9.57 per cent.
The segment recorded its highest-ever October retail sales despite the high year-ago base.
Passenger vehicle sales reach third-highest October level
Passenger vehicle retail sales stood at 5,07,768 units, down 14.23 per cent year-on-year but up 18.86 per cent month-on-month.
The segment recorded its third-highest October sales. Utility vehicles and a strong new-model launch pipeline supported demand, while entry-level cars continued to face weaker conditions.
FADA flagged passenger vehicle inventory as a key concern. Dealer channel stock remained at around 43-45 days, unchanged from September, despite record wholesale dispatches by manufacturers.
Giridhar expects inventory levels to decline to around 30 days by the end of the calendar year as the Dhanteras-to-Diwali retail period progresses.
Tractors and three-wheelers also post growth
Against October 2025, three-wheeler retail sales increased 3.97 per cent, while tractor sales grew 3.10 per cent. Construction equipment sales rose 22.07 per cent.
FADA said the category-wise performance reflected the impact of the shifted festive calendar, with several segments recording growth despite the high comparison base.
