The Federation of Automobile Dealers Associations (FADA) in its latest data has showed that India's automobile retail sales declined 23.8 per cent year-on-year to over 31.72 lakh units in October 2026 primarily due to a high base effect and a shift in the festive calendar. The decline was largely driven by lower registrations of two-wheelers and passenger vehicles. It noted that Dhanteras and Diwali fell in November this year, whereas both Navratri and Diwali were in October last year, with strong pent-up demand post the GST cut.
FADA noted that two-wheeler retail sales fell 28.35 per cent to 23.21 lakh units, while passenger vehicle sales dropped 4.23 per cent to 5.08 lakh units during the month. Rural two-wheeler retail sales fell 33.97 per cent while it declined 20.77 per cent in the urban areas. Electric vehicle (EV) sales touched an all-time high of around 3.55 lakh units, with penetration increasing to 11.5 per cent in October 2026 as compared to 6 per cent in the year-ago period.
It further stated that sales of alternative fuel vehicles, including CNG, hybrid and electric models, were higher than petrol vehicles in October. Sales of CNG, hybrid and electric vehicles accounted for 41.83 per cent, while petrol vehicle sales accounted for 41.6 per cent. Meanwhile, retail sales of commercial vehicles grew 2.29 per cent to 1.15 lakh units, while those of three-wheelers and tractors grew 3.97 per cent to 1.41 lakh units and 3.10 per cent to 79,285 units, respectively. Sales of construction equipment with wheelers also registered 22.07 per cent to 7,434 units.