October vehicle retail sales in India hit all-time high
In October 2025, India’s vehicle retail market reached a record-breaking level, with total registrations rising by about 40.5 percent year-on-year to nearly 4.02 million units. The Federation of Automobile Dealers Associations (FADA) reported that the surge was led by robust demand across two-wheelers and passenger vehicles, making it the strongest October performance in India’s automotive history.
Passenger vehicle registrations rose to around 557,000 units, reflecting an 11.4 percent growth compared to the same month last year. Two-wheeler sales jumped sharply to approximately 3.15 million units, up 52 percent, while commercial vehicles grew by 17.7 percent and three-wheelers by 5.4 percent.
Industry experts attributed this growth partly to the rollout of the simplified GST 2.0 framework, which lowered taxes on entry-level cars and two-wheelers, improving affordability and boosting first-time buyers. FADA noted that rural India played a crucial role, as rural car sales grew over three times faster than in urban markets, and two-wheeler growth nearly doubled that of cities.
The spike in vehicle sales coincided with the 42-day festive period covering Dussehra and Diwali, when overall auto retail increased by 21 percent year-on-year, with over 5.23 million units sold during the season. Passenger vehicles saw about 23 percent growth, while two-wheelers increased by 22 percent.
Dealers also reported improved inventory management and higher footfall compared to previous years. Passenger vehicle inventory was maintained around 53–55 days, with showrooms recording better conversion rates.
Looking forward, FADA expressed cautious optimism. Strong liquidity, higher rural incomes from crop harvests, and wedding season demand are expected to sustain momentum through the year-end. However, the association warned that a post-festive slowdown and global supply chain risks could temper growth in early 2026.
