Vehicle retail sales in India touch record high; outlook strong on tax cuts, festive season

During the 42-day festival season, which included Dussehra and Diwali, overall retail sales climbed 21% on-year, led by a 22% climb in two-wheeler sales and 23% jump in passenger vehicle sales.
| Photo Credit:
ANUSHREE FADNAVIS

Indian auto dealers expect higher sales through the rest of the year, after they reported a 40.5 per cent on-year jump in overall vehicle sales to a record high in October, boosted by tax cuts and strong rural demand, the Federation of Automobile Dealers Associations (FADA) said on Friday.

October retail sales are the first since the goods and services tax (GST) cuts took effect on September 22.

Car sales in rural areas grew thrice as fast as compared to urban areas, while two-wheeler sales rose twice as fast, FADA said.

Among dealers, 64 per cent expect sales to grow in November, while 8 per cent expect a drop, the body said.

“Marriage season, harvest cashflows, and new launches to sustain momentum through year-end,” they said.

During the 42-day festival season, which included Dussehra and Diwali, overall retail sales climbed 21 per cent on-year, led by a 22 per cent climb in two-wheeler sales and 23 per cent jump in passenger vehicle sales.

Published on November 7, 2025