India's automobile retail sales declined 23.8% year-on-year (YoY) to approximately 3.172 million units in October 2026, according to data released by the (Federation of Automobile Dealers Associations) FADA October data. The decline was largely attributed to a high base in October 2025, when Navratri and Diwali coincided with a surge in demand following the GST 2.0 rate cuts.

Key Highlights

• Automobile retail sales October 2026 declined 23.8% to 3.172 million units, largely reflecting a high base.
• Electric vehicle retail sales touched a record 355,000 units, increasing EV penetration to 11.5% in October.

The sales of two-wheelers fell 28.35% to 2.321 million units, with passenger vehicle registrations down 4.23% to approximately 508,000 units. Electric vehicle (EV) retail sales hit a record high of around 355,000 units, however, EV penetration rose from 6% to 11.5% compared with the previous year.

Automobile Retail Sales October 2026: Festival Calendar Impacts Year-on-Year Growth

The drop in sales for October should be looked at in the light of the shift in the festival calendar, FADA President Sai Giridhar said. Both Navratri and Diwali were in October 2025, and pent up demand after the GST 2.0 rate cuts announced on 22nd September, 2025.

In 2026, Navratri fell in October, while Dhanteras and Diwali shifted to November. This difference affected the year-on-year comparison, despite October remaining one of the biggest months for automobile retail activity.

Sai Giridhar said October 2026 was the second highest on record for the month. He also pointed to a 25% sequential rise in retail sales over the month of September as a better gauge of festive demand.

Two-Wheeler and Passenger Vehicle Sales Decline

Two-wheeler retail sales decreased by 28.35% YoY to reach 2.321 million units in October 2026. The drop was more significant in the rural markets, with 33.97% fewer registrations than in urban areas, which saw a 20.77% decrease.

In the month, the number of passenger vehicles retail sold fell 4.23% to around 508,000.

Both these two broad categories of vehicles were among the groups that experienced a decrease in their sales in the retail segment of the automotive industry.  However, the association's assessment pointed to the timing of the major festivals as an important factor behind the year-on-year comparison.

Also Read: PV Retail Sales Jump 32.1% to Record 4.27 Lakh Units in September

EV Retail Sales Touch Record 355,000 Units in October

According to FADA, sales of EVs hit a new record of approximately 355,000 units in October 2026. EV penetration rose to 11.5% from 6% in October 2025.

The month's sales of alternative fuel vehicles, such as CNG, hybrid and electric vehicles, totaled 41.83% of the month's sales. This was higher than the 41.6% share recorded by petrol vehicles.

The data indicates growing retail participation by alternative-fuels, even as overall automobile registrations declined during the month.

Commercial Vehicle, Three-Wheeler and Tractor Sales Grow

The number of cars registered in two-wheelers and passenger vehicles fell, although a few other vehicle classes grew in October.

Commercial vehicles retail sales rose 2.29% to some 115,000 units. The numbers of three-wheelers sold increased by 3.97% to approximately 141,000 units, and tractor registrations increased by 3.10% to 79,285 units.

Construction equipment with wheelers also recorded a 22.07% increase to 7,434 units.

According to Giridhar, commercial vehicles, three-wheelers and tractors each registered their highest-ever October sales, providing support to the overall market despite the decline in two-wheelers and passenger vehicles.

FADA Expects November Automobile Retail Sales to Benefit from Festivals

FADA dealers are optimistic about Indian automobile sales in November, supported by Dhanteras on November 6 and Diwali on November 8. The association said the concentration of major festive occasions within the month could support registrations.

Forecast for December and January will rely on year-end promotions, new vehicle releases and customer preferred variants. Vehicle supply and purchase timing will therefore continue to be significant factors driving retail performance over the next few months.