Business EconomyPosted at: Nov 6 2026 3:17PM

New Delhi, Nov 6 (UNI) India's automobile retail sales declined 23.8 per cent year-on-year to around 31.72 lakh units in October 2026, largely due to an unfavourable festive-season calendar and a high base of comparison, according to data released by the Federation of Automobile Dealers Associations (FADA). The decline was led by a sharp contraction in two-wheeler sales, while passenger vehicle registrations also remained lower than the year-ago period.
FADA attributed the fall partly to the shift in the festive calendar. Dhanteras and Diwali are being celebrated in November this year, whereas Navratri and Diwali both fell in October last year. The previous year's sales had also received a boost from pent-up demand following GST rate cuts, resulting in a higher base for comparison.
Two-wheeler retail registrations dropped 28.35 pc year-on-year to 23.21 lakh units in October. The slowdown was particularly pronounced in rural markets, where sales declined 33.97 pc, compared with a 20.77pc contraction in urban areas. Passenger vehicle registrations also fell 4.23pc to around 5.08 lakh units during the month.
Despite the overall weakness in automobile sales, electric vehicles recorded a strong performance. EV retail sales touched an all-time high of approximately 3.55 lakh units, with their penetration rising to 11.5pc in October from 6pc in the corresponding month last year.
The data also indicated a growing preference for alternative-fuel vehicles. Combined sales of CNG, hybrid and electric vehicles accounted for 41.83 pc of the market, marginally higher than the 41.6 pc share of petrol-powered vehicles during the month.
Some automobile segments continued to register growth. Commercial vehicle retail sales increased 2.29 pc year-on-year to around 1.15 lakh units, while three-wheeler registrations rose 3.97pc to 1.41 lakh units. Tractor sales grew 3.10pc to 79,285 units. Retail sales of wheeled construction equipment also recorded a robust increase of 22.07pc to 7,434 units.
Looking ahead, automobile dealers remain optimistic about demand in November, supported by Dhanteras and Diwali purchases. However, the industry's performance in December and January is expected to depend on year-end promotional schemes, new vehicle launches and the availability of consumer-preferred models and variants.
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