FADA: October Auto Retail Sales Rise 25% MoM to 31.72 Lakh Units

Record-breaking performance in 3W, CV, and tractor segments

Three-wheeler retail sales reached 1,41,420 units in October 2026, a 3.97% year-on-year increase. This figure marks the segment's best-ever October performance.

Within this sector, heavy commercial vehicles increased 28.95% and medium commercial vehicles rose 21.16%, while light commercial vehicles fell 9.57%.

Tractor registrations grew 3.10% year-on-year to 79,285 units, setting an October record. Wheeled construction equipment sales reached 7,434 units, a 22.07% increase.

Passenger and two-wheeler sales trends

Two-wheeler retail registrations totaled 23.21 lakh units in October, a 28.35% decrease compared to the same month last year. Rural registrations fell by 33.97% while urban registrations declined by 20.77%. Despite the October decline, two-wheeler retail sales remain 7.81% higher for the fiscal year to date.

Passenger vehicle retail sales reached 5,07,768 units in October, marking the third-best October for the segment. This figure represents a 14.23% decrease year-on-year, though it is an 18.86% increase from September.

Electric vehicle penetration and fuel mix

Electric vehicle retail sales reached approximately 3.55 lakh units in October, a 44.88% increase over the same month last year. Electric vehicle penetration in October was 62.63% for three-wheelers and 9.65% for two-wheelers. For passenger and commercial vehicles, electric vehicle penetration reached 7.30% and 4.29% respectively.

The passenger vehicle fuel mix in October was 41.60% for petrol and ethanol vehicles. Combined CNG, LPG, hybrid, and electric vehicles accounted for 41.83% of sales, while diesel vehicles made up 16.57%.

Dealer sentiment and economic headwinds

Passenger vehicle inventory levels remained at 43 to 45 days in October, unchanged from September. FADA expects this inventory level to reduce toward 30 days by the end of the year. In a FADA member survey, 51.65% of dealers expect retail growth in November, 34.71% expect flat sales, and 13.64% anticipate a decline.

Approximately 31% of dealers surveyed reported that financing costs and EMIs had a moderate or material impact on their operations.

Commercial vehicle dealers are the most confident for the upcoming period.

FY27 year-to-date growth performance

Total vehicle retail for the April–October FY27 period reached 1.87 crore units, a 10.07% increase compared to the same period in the previous year. During this period, passenger vehicle retail grew by 16.41%, commercial vehicle retail by 18.17%, and tractor retail by 17.72%.

For the period spanning November 2026 to January 2027, 50.41% of dealers expect growth. During that same window, 40.08% of dealers anticipate flat sales, while 9.50% expect a decline.