FADA Releases October’25 and 42 Days Festive Period Vehicle Retail Data

7th November’25, Mumbai, BHARAT: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for October’25 and 42- Days Festive Period.

October’25 Auto RetailReflecting on October 2025 Auto Retail performance, FADA President Mr. C S Vigneshwar said: “October’25 will be remembered as a landmark month for India’s auto retail, where reforms, festivities, and rural resurgence came together to deliver record-breaking results. Overall retail sales grew by a robust 40.5% YoY, as both passenger vehicles and two-wheelers achieved lifetime highs, signalling renewed consumer confidence and strong economic undercurrents.

After an almost quiet September for first 21 days due to the GST 2.0 transition, October witnessed a swift rebound — almost like a hurdle race where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels.

Segment-wise, 2W surged 52% YoY, supported by rural demand, GST reductions, and the festive rush. Dealers reported stronger footfalls and better sentiment leading to extremely high conversion. PV grew 11% YoY, decisively breaching the five-lakh mark to close at 5.57 lakh units, the highest ever in India’s retail history. Importantly, inventory levels eased by 5–7 days to 53–55 days, reflecting healthier supply alignment. CV expanded 18%, aided by freight movement and infrastructure activity, while 3W and Trac grew 5% and 14% respectively. The only laggard was CE, which dipped 30% YoY.

The introduction of GST 2.0 proved transformational — lowering small-car GST rates made vehicle ownership more attainable, especially for the cost-sensitive first time buyer. This affordability boost, timed perfectly with the festive season, turned sentiment into action.

The standout story of the month was the rise of Bharat. Rural India became the true growth engine — with favourable monsoons, higher farm incomes, and government infrastructure push driving purchasing power. Rural PV sales grew over three times faster than urban, while rural 2W growth nearly doubled urban rates, marking a structural shift in the demand map of India’s auto sector.

October 2025, thus, stands as a defining chapter — a month when good policy, strong sentiment, and grassroots prosperity combined to create history for Indian auto retail.”

42-Days Festive’25 Auto Retail

Reflecting on 42-Days Festive Period Auto Retail performance, FADA President Mr. C S Vigneshwar said: “The 42-day festive period of 2025 stands as a defining milestone for India’s auto retail, delivering the highest-ever sales and growth across categories. Overall vehicle retails surged 21% YoY, affirming the success of the Government’s transformative GST 2.0 reforms — a reform that truly embodies the spirit of Simpler Tax, Stronger Growth.

This festive season was unique — Dussehra and Diwali falling in the same month coincided perfectly with the rollout of the new GST framework. Together, they ignited demand across Bharat’s heartlands. Dealers nationwide reported record enquiries, higher conversions, and a palpable sense of optimism as customers advanced their buying decisions to benefit from reduced GST rates and attractive festive schemes. 

2W rose 22% YoY, powered by improved rural sentiment, better liquidity, and the affordability impact of GST rationalisation. Dealers described it as the best festive season in recent memory, with strong traction in commuter bikes and scooters, alongside rising EV interest.

PV grew 23% YoY, marking an all-time festive high. The GST 2.0 vision of empowering affordability and boosting middle-class consumption found real reflection on dealership floors. Compact and sub-4-metre cars saw strong resurgence as reduced tax rates expanded the buying base. Dealers also noted that retail momentum exceeded supply in several models.

CV recorded 15% YoY growth, driven by rising freight activity, rural logistics, and infrastructure push — sectors that have directly benefitted from the Government’s Viksit Bharat development agenda.

Trac grew 14%. 3W registered 9% growth. CE, however, contracted 24%, owing to project delays and financing constraints.

This season’s success has reaffirmed that the GST 2.0 reform is not just a tax simplification, but a catalyst for consumer-led growth and national prosperity. It has lowered ownership costs, energised Bharat’s economy, and rekindled aspiration in every segment of society.

In essence, the 42-day festive period symbolised the strength of Reform, Resilience, and Rural Revival — three pillars shaping the future of India’s mobility. With record retail numbers and inclusive growth, October–November 2025 will be remembered as the time when progressive policy met the festive spirit to deliver a truly Viksit Bharat moment for India’s Auto Retail Sector.”

Near-Term Outlook

The near-term outlook is supported by a confluence of encouraging macro and policy factors. The GST 2.0 reforms hailed as a cornerstone of the Government’s “Simpler Tax, Stronger Growth” and “Viksit Bharat by 2047” vision — continue to drive affordability, especially in the mass and entry-level segments. Strong rural cash flows post-harvest, marriage season demand, and improved stock availability across categories are expected to sustain retail momentum. Upcoming new model launches, healthier financing conditions, and stable fuel prices further reinforce a supportive ecosystem for continued growth.

Insights from our Dealer survey indicates that the industry expects the momentum from the festive surge to extend into November, though with a natural moderation after an all-time-high October. 2W Dealers foresee steady demand backed by rural liquidity, wedding-related purchases, and spillover from festive bookings, aided by GST benefits and improved sentiment. PV Dealers report a strong pipeline of undelivered festive bookings, better stock availability, and continued traction from the GST price correction, though some expect a pause as customers await year-end offers and new model launches. CV Dealers point to a solid order pipeline and steady freight movement, supported by infrastructure activity and the ongoing impact of GST 2.0 on logistics efficiency.

Overall, Dealer confidence remains upbeat yet measured — with 64% expecting growth, 27% anticipating a flat trend, and only 8% foreseeing a decline. The industry outlook for November can therefore be characterised as “cautious optimism” — a phase where the sector consolidates the extraordinary gains of the festive season while preparing for a stable close to the calendar year. With policy reforms, demand visibility, and rural resilience aligning, the auto retail sector enters the year-end with confidence and constructive momentum.

Next 3 Months Outlook

The outlook for India’s auto retail over the next three months remains decisively positive, backed by the continued impact of GST 2.0, steady rural income, and seasonal demand from weddings and harvests. Festive spillover bookings, better stock availability, and new model launches are expected to sustain retail momentum, supported by year-end offers and new-year registrations. As per FADA’s Dealer survey, 70% expect growth to continue. With affordability gains from “One Nation, One Tax” reforms and improving sentiment across Bharat, the industry enters 2026 with measured optimism and steady confidence.

Key Findings from our Online Members Survey

• Liquidity
• Good 73.78%
• Neutral 22.38%
• Bad 03.85%
• Sentiment
• Good 75.17%
• Neutral 22.03%
• Bad 02.80%
• Expectation from November’25
• Growth 64.34%
• Flat 27.27%
• De-growth 08.39%
  
• Expectation in next 3 months
• Growth 69.58%
• Flat 25.87%
• De-growth 04.55%
• Charts showing Vehicle Retail Data for various period
• All India Vehicle Retail Data for FY’26 YTD (Apr’25 to Oct’25)

All India Vehicle Retail Data for Oct’25

Source: FADA Research

Source: FADA Research

Chart showing Fuel Wise Vehicle Retail Market Share for Oct’25

Source: FADA Research

All India Vehicle Retail Strength Index for Oct’25 on basis of Urban & Rural RTOs.  

Source: FADA Research

All India Vehicle Retail Strength YoY and MOM comparison for Oct’25.

Source: FADA Research

Disclaimer:

1. 1. The above numbers do not have figures from TS.
   2. Vehicle Retail Data has been collated as on 04.11.25 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,400 out of 1,458 RTOs.
   3. Commercial Vehicle is subdivided in the following manner
      1. LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
      2. MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
      3. HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
   4. 3-Wheeler is sub-divided in the following manner
      1. E-Rickshaw – Passenger
      2. E-Rickshaw – Goods
      3. 3-Wheeler – Goods
      4. 3-Wheeler – Passenger
      5. 3-Wheeler – Personal 
   5. 42 days festive period ranges from 1st day of Navratri to 15 days post Dhanteras due to time lag for vehicle registration
      1. Festive’25 – 22nd Sep’25 – 02nd Nov’25

• Festive’24 – 3rd Oct’24 – 13th Nov’24