The automobile retail sales recorded its highest-ever festive season performance during the 42-day period beginning September 22, the onset of Navratri and November 2, fifteen days after Dhanteras, delivering strong demand across vehicle categories. The Federation of Automobile Dealers Associations (FADA) on Friday said that overall retail sales grew 21% year-on-year to about 5.24 million units during the period, aided by improved affordability under the GST rejig, recovery in rural sentiment and renewed urban consumption.
FADA President C S Vigneshwar said that GST 2.0 reforms helped expand the buyer base, particularly in the entry and mid segments, and strengthened confidence across urban and rural markets alike.
Passenger vehicle registrations rose to around 7,66,918 units from 6,21,539 units a year earlier, recording a growth of about 23%.
Two-wheeler sales during the festive period increased to around 4.05 million units from 3.33 million units last year, up 22%. The segment benefited from improved liquidity in rural markets, favourable financing, and renewed interest in commuter motorcycles and scooters. Dealers described this as the strongest festive season in recent years, with an uptick in enquiries for electric two-wheelers added to the overall momentum.
Three-wheeler registrations grew 9%, while commercial vehicle sales rose 15% during the period, supported by fleet replacement activity and broader movement in infrastructure and logistics demand.
FADA also released data for October, which overlaps with and form a subset of the broader 42-day festive season performance. Overall retail sales for the month rose 41% year-on-year to about 4.02 million units. Passenger vehicle registrations grew 11% to 5,57,373 units, while two-wheeler sales surged 52% to about 3.15 million units compared with the same month last year.
Vigneshwar said the industry witnessed a swift rebound after a quieter first three weeks of September, as deferred purchases aligned with festive sentiment and the effects of GST-driven price rationalisation. Looking ahead, he said the sector remains optimistic for the next quarter, supported by wedding-season demand, harvest-linked cash flows, delivery spillovers and continued interest in new model launches, though a natural moderation could set in after the record festive highs.