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India Auto Retail Sets October Record as Festive Window, GST 2.0 Spur Buying

FADA says GST 2.0’s lower small‑car rates improved affordability, catalyzing buying.

Overview

  • Retail registrations in October rose 40.5% year over year to about 40.24 lakh units, the highest on record, with two-wheelers leading the surge.
  • Two-wheeler sales jumped 51.8% to roughly 31.5 lakh, while passenger vehicles climbed 11.4% to about 5.57 lakh as both categories hit lifetime monthly highs, according to FADA.
  • Across the 42-day festive period, sales reached 52,38,401 units, up 21% from a year earlier, helped by the DussehraDiwali overlap and stronger rural demand.
  • Other categories advanced as well: commercial vehicles grew 17.7%, tractors 14.2%, and three-wheelers 5%, while construction equipment fell 24% due to project delays and tight financing.
  • Dealer inventory eased to an estimated 53–55 days, and surveys show 64% expect growth in November and 70% anticipate gains next quarter, supported by harvest cash flows, the marriage season, and new model launches.