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India Auto Retail Hits October Record With 40.5% Surge to 4.02 Million

GST 2.0 tax relief during a prolonged festive window unlocked pent-up rural demand.

Overview

  • FADA reported lifetime highs as two-wheeler retails jumped 51.8% to about 31.5 lakh and passenger vehicles rose roughly 11% to 5.57 lakh, with other categories also advancing.
  • The 42-day DussehraDiwali period produced record festive retails of about 5.24 million units, a 21% year-on-year increase across segments.
  • Tax cuts under GST 2.0 reduced levies on small cars and entry-level two-wheelers, widening affordability and drawing in more first-time buyers.
  • Rural markets led the rebound, with passenger vehicle growth over three times faster than in cities and two-wheeler growth nearly double urban rates.
  • Dealer inventories eased to roughly 53–55 days as footfalls and conversion improved, and surveys show 64% expect November growth with about 70% forecasting expansion into the next quarter.