Vehicle retail sales in the country fell 23.8 per cent year on year to 31,72,466 units in October 2026, as a shift in the festive calendar shifted a substantial portion of Diwali-related purchases to November. The decline was led by the two-wheeler and passenger vehicle (PV) segments. Commercial vehicles (CV), three-wheelers, tractors and construction equipment, however, recorded growth over the same month last year.
According to the Federation of Automobile Dealers Associations (FADA) data released on Friday showed that overall vehicle retail increased 25.05 per cent month on month from 25,36,920 units in September.
Despite the year-on-year decline, October was the second-highest month for vehicle retail on record.
“October is India’s largest retail month of the year, and this year it must be read with the calendar firmly in mind. Total vehicle retails stood at 31,72,466 units — 25.05% higher than September, but 23.80% lower than October 2025. That year-on-year decline is almost entirely optical. Last October was an exceptional month that carried both Navratri and Deepawali together, over and above the pent-up demand released after the GST 2.0 rate cuts of 22nd September 2025; this year Navratri fell in October while Dhanteras and Diwali move into November.
"Measured against that extraordinary base, Two-Wheelers declined 28.35% and Passenger Vehicles 14.23%, even as Commercial Vehicles grew 2.29%, Three-Wheelers 3.97%, Tractors 3.10% and Construction Equipment 22.07%. Seen correctly, this was still the second-highest October on record," FADA President Sai Giridhar, said in a statement.
FADA attributed the sharp annual decline partly to a high base in October 2025, when both Navratri and Diwali fell in the same month. The comparison was also influenced by pent-up demand following the GST 2.0 rate cuts announced in September last year.
This year, Navratri was celebrated in October, while Dhanteras and Diwali fall on November 6 and 8, respectively.
Two-Wheeler And PV Retail Sales Fall
Two-wheeler retail sales dropped 28.35 per cent year on year to 23,21,419 units in October. However, the segment recorded a 29.67 per cent increase over September. The sales decline was more pronounced in rural markets, where registrations fell 33.97 per cent, compared with a 20.77 per cent drop in urban areas.
Passenger vehicle retail sales declined 14.23 per cent year on year to 5,07,768 units, although they rose 18.86 per cent month on month. FADA said the segment recorded its third-highest October sales.
Maruti Suzuki Dominates PV Retail Sales
Maruti Suzuki led the passenger vehicle retail market with 2,11,996 units, accounting for a 41.75 per cent share. Tata Motors followed with 73,449 units and a 14.47 per cent share, while Mahindra & Mahindra recorded 64,982 units, giving it a 12.80 per cent share.
According to FADA, utility vehicles and a strong pipeline of new models continued to support demand in the passenger vehicle segment. Entry-level cars, however, remained relatively weak.
PV dealer inventory was estimated at 43-45 days, unchanged from September. FADA expects stock levels to move back towards the 30-day range by the end of the calendar year as festive demand continues.
CVs, Three-Wheelers And Tractors Record Growth
Commercial vehicle retail sales increased 2.29 per cent year on year to 1,15,140 units in October, marking the segment's best-ever performance for the month. Sales were also up 11.19 per cent from September.
Heavy CVs led the growth, with retail sales rising 28.95 per cent, while medium commercial vehicles recorded a 21.16 per cent increase. Light commercial vehicle sales, in contrast, declined 9.57 per cent.
Three-wheeler retail sales grew 3.97 per cent year on year to 1,41,420 units, while tractor sales increased 3.10 per cent to 79,285 units. Both segments registered their highest-ever October retail figures.
Wheeled construction equipment sales also posted growth, rising 22.07 per cent year on year to 7,434 units.
EV Retail Sales Touch Record High
Electric vehicle retail sales reached an all-time high of around 3.55 lakh units in October, marking a 44.88 per cent increase over the same month last year. EV penetration across vehicle categories rose to approximately 11.5 per cent, compared with around 6 per cent in October 2025.
FADA said electric two-wheelers, three-wheelers, passenger vehicles and commercial vehicles each recorded their highest-ever October retail sales. EVs accounted for 62.63 per cent of three-wheeler retail sales during the month, while their share in passenger vehicles stood at 7.30 per cent.
The association attributed the rise in EV demand to higher petrol and diesel prices, improvements in driving range and prices that are increasingly approaching those of comparable internal combustion engine models. It also noted that vehicle availability had become a constraint in some segments.
FADA said the outlook for November would depend on demand around Dhanteras and Diwali, followed by year-end offers, new vehicle launches and availability. Dealers also identified concerns over underlying demand, rural cash flows and higher financing costs.
Vehicle Retail Sales Grow In April-October
For the financial year to date, covering April-October 2026, total vehicle retail sales increased 10.07 per cent year on year to 1,87,21,759 units.
PV retail sales grew 16.41 per cent during the seven-month period, while two-wheeler sales rose 7.81 per cent. CV retail increased 18.17 per cent, three-wheeler sales grew 13.38 per cent and tractor sales were up 17.72 per cent.
