FADA: October auto retail falls 23.8% on festive calendar shift

What FADA's October numbers show

The Federation of Automobile Dealers Associations, which tracks retail registrations from dealers across India, reported total vehicle retail sales of 31,72,466 units for October 2026. That is down 23.80 percent from October 2025, even though it is up 25.05 percent from September this year.

FADA president Sai Giridhar called the year on year fall "almost entirely optical." Last October carried Navratri and Deepawali in the same month, on top of demand pulled forward by the GST 2.0 rate cuts. This year Navratri fell in October but Dhanteras and Diwali move into November, so a large chunk of festive buying has simply shifted a month later.

Two wheelers and cars take the hit

Two wheeler retail fell 28.35 percent to 23,21,419 units, the single biggest drag on the overall number. Passenger vehicle retail fell 14.23 percent to 5,07,768 units. Both categories were lapping an unusually strong October 2025, when the GST cut and the festive calendar combined to pull buyers into showrooms early.

Commercial vehicles, three wheelers and tractors set October records

Away from the two biggest categories, the picture flips. Commercial vehicle retail rose 2.29 percent to 1,15,140 units, FADA's best ever October for the segment. Heavy commercial vehicles led with 36,879 units, up 28.95 percent, and medium commercial vehicles grew 21.16 percent to 9,042 units. Light commercial vehicles were the one soft spot, down 9.57 percent to 69,148 units.

Three wheeler retail climbed 3.97 percent to 1,41,420 units, also a best ever October, while tractor retail rose 3.10 percent to 79,285 units on steady rural demand.

EVs keep gaining ground

Electric vehicle retail across all categories touched an all time high of approximately 3.55 lakh units in October, up 44.88 percent year on year. FADA put EV penetration at around 11.5 percent of total retail, against approximately 6 percent in October last year.

For a buyer, the October dip does not mean demand has dried up. It means a chunk of festive bookings that would normally convert to retail in October have moved into November with Dhanteras and Diwali. Dealers FADA spoke to expect that November to show the opposite swing, a strong year on year gain as those bookings turn into deliveries. The commercial vehicle, three wheeler, tractor and EV numbers, none of which depend on the festive calendar in the same way, point to steadier underlying demand through the month.

Sources

• Auto retail falls 23.8% YoY in October 2026. Dealers expect festive boost in November: FADA
• Commercial Vehicle Retail Sales Rise 2.29% To 1.15 Lakh In October: FADA
• Tractor Retail Sales Rise 3.10% To 79,285 Units In October: FADA
• Sai Giridhar takes over as 38th President of FADA