India auto sales October record: FADA data shows 40% jump led by two-wheelers

The dealers’ body said the surge followed the roll-out of a simplified Goods and Services Tax regime and the start of the peak festive season, which together unlocked pent-up demand and brought first-time buyers back to showrooms. FADA’s October figures point to an all-time high month for retail vehicle sales, with the upswing expected to extend through the year-end on the back of weddings, harvest-linked incomes and new model launches.

Two-wheelers, a key barometer of rural and entry-level urban demand, led the acceleration. Retail sales in the category rose nearly 52% year-on-year in October, buoyed by affordability gains and stronger farm incomes, FADA data show. Passenger vehicle (PV) sales also set a new monthly record, rising about 11% from a year earlier.

Granular data from industry reports showed PV retail sales at roughly 557,000 units in October, while two-wheeler sales were about 3.15 million units. Commercial vehicle sales rose about 18% year-on-year, with three-wheelers and tractors also growing, albeit at a slower pace. The mix underscores how mass-market categories benefited most from lower ownership costs and better financing availability.

FADA pointed to easing inventory pressures for passenger vehicles, with stock at dealerships falling by roughly 5–7 days to the low-to-mid 50s, suggesting supply is aligning better with demand than earlier in the year. Still, dealers remain focused on disciplined dispatches to avoid a build-up of unsold vehicles after the festive peak.

Manufacturers’ performance in October reflected the broader trends. Maruti Suzuki consolidated its lead in passenger vehicles, while Tata Motors and Mahindra & Mahindra posted double-digit gains. Hyundai Motor India’s retail tally softened, highlighting pockets of divergence even within a strong month. In two-wheelers, Hero MotoCorp registered the sharpest rise, followed by Honda Motorcycle & Scooter India and TVS Motor.

The 42-day festive window that straddled Dussehra and Diwali delivered the highest-ever seasonal retail outcome, up about 21% year-on-year, led by two-wheelers and passenger vehicles. That momentum, combined with October’s monthly high, has prompted dealers to signal a constructive near-term outlook into December, provided financing remains supportive and supply chains stay fluid.

Policy changes were a central catalyst. FADA and several industry trackers credited the reworked GST structure—often referred to as “GST 2.0”—for lowering effective taxes on entry-level models, thereby improving affordability for first-time buyers. The impact was most visible outside major metropolitan areas. As rural incomes improved, demand in smaller towns outpaced urban markets by a wide margin, according to FADA commentary.

C S Vigneshwar, FADA’s president, framed October as a turning point for the sector. “October 2025 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,” he said, adding that both passenger vehicles and two-wheelers reached lifetime highs. ([FADA][3])

International and domestic newswires echoed the scale of the jump, noting that retail vehicle sales in October were the strongest on record and that dealers expect robust traction into the year-end. Analysts also highlighted that the festive period’s double-digit gains and the tax cut’s timing helped shift the mix towards budget segments, even as sport-utility vehicles remain popular.

Context: October’s outcome follows a build-up that began in late September, when the GST revision and Navratri demand first lifted sales trends. FADA’s own September assessment flagged an “optimistic” outlook for October on the combined effect of economic resilience, festival sentiment and GST 2.0. The October data, along with record festive-period totals, appear to validate that forecast.

For manufacturers and dealers, the composition of demand matters. Two-wheelers’ strength typically signals healthier rural cash flows, while sustained gains in entry-level passenger cars can broaden the base of vehicle ownership. The improvement in dealer inventory days suggests a better balance between wholesale dispatches and retail offtake, which, if maintained, could reduce the risk of discount-led corrections later in the quarter.

The near-term outlook hinges on financing costs, fuel prices and the durability of rural incomes into the Rabi season. If those variables remain supportive, industry participants expect momentum to carry into early 2026, with the caveat that any abrupt tightening of credit or adverse weather could temper demand. For now, October’s figures indicate that India’s auto retail market has shifted into a higher gear, with reforms and festival demand working in tandem to broaden the recovery.