Passenger Vehicle Retail Sales Fall 14.23% To 5.08 Lakh In October: FADA

Passenger vehicle retail sales in India fell 14.23 percent year on year to 5,07,768 units in October 2026, according to FADA. Volumes rose 18.86 percent from 4,27,213 units in September. October 2025 retails stood at 5,92,032 units.

FADA called it the third-best October on record, with utility vehicles and a strong launch pipeline anchoring demand while entry-level cars remained the softer spot.

FADA said the year-on-year decline reflects an exceptionally high base. October 2025 carried both Navratri and Diwali, plus demand released after the GST 2.0 rate cuts. During this year’s Navratri window, PV retails of 1,91,426 units were down 18.20 percent YoY but up 15.64 percent over Navratri 2024. FY2027 retails through October are up 16.41 percent at 30,68,353 units.

Urban Markets Hold Up Better

Urban PV retail fell 15.30 percent YoY and rural fell 12.44 percent, the reverse of the two-wheeler pattern. Month on month, urban rose 20.10 percent and rural 16.90 percent. Urban markets accounted for 61.7 percent of PV retail, up from 61.1 percent in September.

FADA President Sai Giridhar called inventory the industry’s pressing concern. Against record wholesale dispatches from manufacturers, PV channel stock held at around 43-45 days, unchanged from September. FADA expects the Dhanteras-to-Diwali retail wave to bring inventory back to a 30-day range by the end of the calendar year.

Alternative Fuels Edge Past Petrol

Petrol/ethanol vehicles held a 41.60 percent share in October, against 48.96 percent a year earlier. CNG, hybrid and electric together reached 41.83 percent. CNG/LPG accounted for 24.59 percent (23.20 percent a year ago) and hybrids for 9.94 percent (6.96 percent). Diesel held 16.57 percent, against 17.34 percent.

EVs took a 7.30 percent share, up from 3.55 percent in October 2025 but below September’s 8.45 percent. That works out to roughly 37,000 electric passenger vehicles, against about 21,000 a year ago. FADA said October was a best-ever October for electric PVs. It added that demand ran ahead of supply, so availability was the binding constraint.

Maruti Retains Lead; Tata And Mahindra Gain Share

Maruti Suzuki retailed 2,11,996 units for a 41.75 percent share, from 42.15 percent a year ago. Tata Motors followed with 73,449 units and a 14.47 percent share, up from 13.52 percent. Mahindra & Mahindra retailed 64,982 units (12.80 percent, from 12.46 percent), Hyundai Motor India 58,099 units (11.44 percent, from 11.73 percent) and Kia India 30,799 units (6.07 percent, from 5.98 percent).

Toyota Kirloskar retailed 28,727 units, down about 25 percent YoY, with its share slipping to 5.66 percent from 6.48 percent. JSW MG Motor retailed 7,082 units (up about 5 percent) for a 1.39 percent share. VinFast India retailed 2,571 units, from 142 units a year ago, for a 0.51 percent share.

Outlook

Dealers flag continued supply and model-availability gaps, a possible post-festive lull once Diwali passes, and the first repo-rate increase in over three years. About 31 percent of dealers reported a moderate or material effect on financing costs and EMIs. Overall, 51.65 percent of dealers expect growth in November.