FADA: dealer stock hits 43 to 45 days, double its own norm

Stock piles up after the festive dispatch

The Federation of Automobile Dealers Associations of India says passenger vehicle stock sitting with its member dealers stood at 43 to 45 days at the end of October 2026, unchanged from September and more than double the 21 day level FADA itself recommends. The build up followed weeks of manufacturers dispatching cars to stock showrooms ahead of Dhanteras on November 6 and Diwali on November 8 this year.

FADA president Sai Giridhar said the existing inventory is manageable for now but could turn into a real worry if dealers are still carrying similar stock levels by the end of December, according to the federation's October retail report, covered by Nationpath India and Finimize.

Financing costs add to the strain

FADA's own survey of its members found that 31 percent report a moderate or material hit from higher financing costs and loan EMIs on the vehicles they are holding, after the first repo rate increase in more than three years, Angel One reported, citing the FADA release.

Retail itself was weaker in October. Passenger vehicles fell 14.23 percent year on year to 5.08 lakh units and two wheelers fell 28.35 percent to 23.21 lakh units, a drop FADA attributes largely to Diwali moving from October in 2025 to November this year rather than a sudden fall in demand.

Dealers are still cautiously hopeful about the month ahead. In an online members' survey reported by Storyboard18, 51.65 percent of dealers expect retail growth in November, 34.71 percent expect flat volumes and 13.64 percent expect a decline.

What it means for a buyer this month

For a buyer walking into a showroom now, this stock overhang is good news in the short run. FADA has flagged that if November retail does not clear enough of the pile up, manufacturers and dealers may turn to additional discounts, incentives or changes to dispatch schedules, Nationpath India and Finimize both reported.

That pressure will not be even across the market. Maruti Suzuki posted a record October wholesale number even as the overall market fell, a sign that some brands are managing their stock better than others. So the discount available on a given model will depend on the maker, the variant and the specific dealer's own stock, not on FADA's national average.

A buyer with a booking in hand should ask the dealer directly how many days of stock they are carrying in that model and variant. That local number, more than the national figure FADA publishes, will decide how much room there is to negotiate before dealers close their books for the calendar year.

Sources

• Indian Auto Dealers Flag Inventory Concerns as November Sales Come Into Focus
• Auto retail falls 23.8% YoY in October 2026. Dealers expect festive boost in November: FADA
• India Auto Sales October 2026: Dealer Inventory Rises, EVs Hit Record
• India's Auto Dealers See A Festive Lift, Then A Question Mark