Overview
- Two-wheelers led the rebound with retail sales up about 52% to roughly 3.15 million in October, while passenger vehicles set a monthly record at about 557,000, up around 11% year on year.
- FADA credited GST 2.0 for improving affordability—cutting taxes on small cars and entry two-wheelers to 18% from 28%—which boosted first-time and value-focused buying.
- Electric adoption accelerated, with electric passenger vehicles up about 57.5% year on year and electric commercial vehicles more than doubling, even as EV two- and three-wheeler gains were modest off large bases.
- Rural markets outpaced cities, with passenger vehicle growth in smaller towns more than three times urban rates and two-wheeler growth nearly double, supported by good monsoons and stronger farm incomes.
- Dealer inventories eased to roughly 53–55 days and a FADA survey showed most retailers anticipate continued growth in November and into early 2026, after a festive period that rose about 21% to around 5.24 million units.