Passenger Vehicle (PV) retail sales continued to lead India’s automotive market in November 2025, rising 19.7% YoY, making it one of the strongest post-festive season performances in recent years. The growth was attributed by The Federation of Automobile Dealers Associations (FADA) to the ongoing GST 2.0 price benefits and sustained OEM dealer offers.
SUVs continue to dominate sales figures
SUVs continued to dominate segment performance, with compact and mid-size models contributing a major share of volumes as supply constraints eased compared to earlier in the year. Dealers reported steady walk-ins driven by wedding-season demand, extended festival promotions and an improved financing environment. However, early signs of demand softening emerged in the premium sub-segment, particularly in top metro cities.
Industry executives noted a shift in buying behavior, with customers responding more to value-led pricing and discount-led opportunities than traditional festive calendar cues. With most festival-linked registrations completed in October rather than spilling over into November, the month could have seen a pullback. Instead, enquiry levels and conversions remained firm, reinforcing sentiment that affordability improvements have become a primary demand driver.
Inventory levels
Inventory levels improved meaningfully with passenger vehicle stock eased to 44–46 days, down from 53–55 in October, indicating better retail alignment and tighter factory dispatch planning. Dealers said the current inventory position is more manageable and reflects healthier retail discipline.
According to FADA President C. S. Vigneshwar, “The industry grew 2.14% year-on-year, despite a high base created last November when late festive dates boosted registrations. This year, most festive deliveries were completed in October, yet demand remained resilient, supported by GST rate cuts, ongoing retail offers and category-wide price reductions.
Passenger Vehicles led growth with a 19.7% rise, driven by GST benefits, marriage-season buying, improved supply of high-demand models and strong compact SUV traction. Inventory levels improved to 44–46 days, down from 53–55 days, signalling better demand-supply alignment.
Two-wheeler retail dipped 3.1%, weighed down by a shift in festive purchases and uneven model availability, though dealer walk-ins remain healthy. Commercial Vehicles saw 19.94% growth, supported by freight activity, tourism, tenders and infrastructure demand, though utilisation varied across markets.”
According to FADA, the near-term outlook remains stable, supported by marriage-season demand, upcoming year-end schemes and expected price hikes in January, which typically advance purchases. Rural sentiment is improving as rabi sowing progresses ahead of last year and farm liquidity is expected to build over the next few weeks. The IMD’s colder-than-usual winter forecast is also expected to support mobility needs in northern and central markets.
FADA expects some moderation during the model-year transition period in January–February, though mass-market and entry SUV demand is expected to remain steady. New-model introductions in early 2026, continued GST-led affordability and pre-budget expectations are also expected to support retail continuity, added FADA.
The industry enters the final month of the year with measured confidence thanks to a stable supply, improved affordability improving and firm demand across multiple segments.