Auto Sales
Oct auto retail sales surge 41% YoY on festive demand, GST rate cuts - FADA
This story was originally published at 11:02 IST on 7 November 2025
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--FADA: Oct total vehicle retail sales 4.02 mln units, up 40.5% on year
--FADA: Oct passenger vehicle retail sales 557,373 units, up 11.4% on yr
--FADA: Oct 2-wheeler retail sales 3.15 mln units, up 51.8% on year
--FADA: Oct CV retail sales 107,841 units, up 17.7% on year
--FADA: Oct 3-wheeler retail sales 129,517 units, up 5.4% on year
--FADA: Oct tractors retail sales 73,577 units, up 14.2% on year
--FADA: Oct rural passenger vehicle sales grew three times urban sales growth
--FADA: Oct rural 2-wheeler sales growth two times of urban sales growth
--FADA: 64?alers expect Nov auto sales will grow, 8% expect sales to fall
--FADA: 70?alers expect Nov-Jan auto sales to grow, 26% expect flat sales
--FADA: 26?alers see Nov-Jan auto sales flat, 5% expect sales to fall
--FADA: FY26 festival auto sales 5,238,401 units, up 21.1% on festival FY25
MUMBAI – Retail vehicle sales rose nearly 41% on year to 4.02 million units in October, led by a surge in two-wheeler sales, data from the Federation Of Automobile Dealers Associations showed. Sequentially, the retail sales more than doubled from 1.83 million in September. This growth was led by higher demand due to the festive season, and was further buoyed by the goods and service tax cut across vehicle categories, FADA said in a press release.
Passenger vehicle sales rose over 11% on year and over 86% on quarter to 557,373 units during the same period. Two-wheeler sales rose nearly 52% on year and surged two-and-a-half times sequentially to 3.15 million units. Commercial vehicle sales rose nearly 18% on year to 107,841 units in October. Three-wheeler sales and tractor sales rose 5% and 14% on year to 129,517 units and 73,577 units, respectively.
Passenger vehicle sales growth in the rural market tripled compared to sales in the urban market in October, FADA said in its press release. Rural growth outpaced urban growth in two-wheeler segment too, with sales growing twice in the rural market compared to the latter. "After an almost quiet September for first 21 days due to the GST 2.0 transition, October witnessed a swift rebound...rural India became the true growth engine — with favourable monsoons, higher farm incomes, and government infrastructure push driving purchasing power," the automotive body said.
On Sept. 22, the GST Council reduced tax on small cars, with engines below 1,200 cc attacting 18% GST from the earlier 28%. It increased GST on mid-sized and big cars to 40% from 28%, while removing the compensation cess. These cars were earlier taxed at 45-50% with cess. Tax on tractors and agricultural machinery was reduced to 5% from 12%. In case of two-wheelers, the GST Council cut the rate to 18% from 28-31% for engines less than or equal to 350 cc. Two-wheelers with more than 350 cc engines now attract 40% GST, higher than 31?rlier.
APR-OCT
In Apr-Oct, retail sales grew nearly 11% on year to 16.39 million units. This was mainly led by a near 13% surge in two-wheeler sales to 11.99 million during this period. Passenger vehicle sales rose nearly 6% on year to 2.52 million in the seven-month period. Commercial vehicle and three-wheeler sales grew at a modest 5% and 4%, respectively, in Apr-Oct. Retail sales of automobiles during the festival period of the current financial year was at 5.24 million, up 21% from the year-ago festive period.
Around 64% of dealers now expect auto sales to grow in November, while 8% of them expect sales to fall, the association said. Around 70% of dealers expect sales to grow in Nov-Jan, while 26% expect it to remain flat. Around 5% of dealers expect auto sales to fall in that period. FADA remains positive on retail sales growth for the near- and mid-term, driven by factors such as the marriage season, harvest cashflows, and new launches to sustain momentum till the end of the year. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Akash Mandal
Edited by Tanima Banerjee
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