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India Auto Retail Sets October Record, Festive Sales Reach 5.24 Million

Dealers credit GST 2.0 tax cuts alongside stronger rural incomes for lifetime highs, with momentum expected into early 2026.

Overview

  • FADA reported total October retails of 4.02 million, up 40.5% year on year, with two-wheelers at 31.5 lakh (+52%) and passenger vehicles at 5.57 lakh (+11%).
  • Across the 42-day Navratri-to-Diwali window, vehicle registrations rose 21% to 5.24 million, the strongest festive performance on record.
  • The surge was driven by GST 2.0 rate cuts that lowered ownership costs for small cars and entry two-wheelers, reinforced by robust rural demand and festival buying.
  • Dealer inventories eased to roughly 53–55 days, and surveys show 64% expect growth in November with about 70% positive on November–January despite likely moderation after the peak.
  • Pockets of unevenness remained, with construction equipment down about 24–30% year on year and Bengaluru registrations spiking to 86,014 in October, lifting transport revenues.