FADA October 2026 Auto Retail Performance

The Federation of Automobile Dealers Associations (FADA) released vehicle retail data for October 2026, reporting total retails of 31,72,466 units, which represents a 23.80% year-on-year decline but a 25.05% month-on-month increase. This performance marks the second-best October on record, with the YoY decline attributed primarily to base effects rather than demand destruction. October 2025 contained both Navratri and Diwali festivals plus pent-up demand following GST 2.0 rate cuts implemented on September 22, 2025, while the 2026 festive calendar shifted Diwali to November.

Category-wise Performance Breakdown

Two-wheelers retailed 23,21,419 units, declining 28.35% YoY but growing 29.67% MoM, representing the second-best October ever for the segment. The decline was more pronounced in rural areas (-33.97% YoY) compared to urban areas (-20.77% YoY), reflecting the festival calendar's impact on the most Diwali-dependent segments. Passenger vehicles recorded 5,07,768 units, down 14.23% YoY but up 18.86% MoM, making it the third-best October on record. Inventory levels remained steady at 43-45 days, unchanged from September.

Commercial vehicles stood out with 1,15,140 units, growing 2.29% YoY and 11.19% MoM to achieve their best-ever October performance. Growth was led by heavier vehicles with HCVs up 28.95% and MCVs up 21.16%, while LCVs declined 9.57%. Three-wheelers reached 1,41,420 units, growing 3.97% YoY and 6.68% MoM for their best-ever October, with electric vehicles comprising approximately 63% of the segment. Tractors retailed 79,285 units, up 3.10% YoY and 3.09% MoM for their best-ever October, while wheeled construction equipment reached 7,434 units, growing 22.07% YoY and 14.62% MoM.

Electric Vehicle Momentum and Fuel Mix

Electric vehicle retails reached an all-time high of approximately 3.55 lakh units, representing 44.88% YoY growth and lifting overall EV penetration to roughly 11.5% from about 6% a year earlier. Demand reportedly outpaced supply due to elevated fuel prices, improved driving ranges, and near-ICE pricing. In the passenger vehicle segment, alternative fuels (CNG, hybrid, and EV) collectively reached 41.83% market share, slightly exceeding petrol's 41.60% share for the first time.

Regional and Market Segment Analysis

The data revealed significant regional variations, with northern markets and rural areas showing the sharpest declines due to the festival calendar shift. Urban two-wheeler retails declined 20.77% YoY while rural fell 33.97% YoY. Commercial vehicles showed stronger urban growth (15.47% MoM, 6.51% YoY) compared to rural (6.51% MoM, -2.29% YoY). Three-wheelers performed better in rural areas (11.76% YoY growth) than urban (-3.92% YoY).

Navratri 2026 Performance

During the Navratri period (October 11-20, 2026), total vehicle retails reached 11,40,658 units, down 5.06% from Navratri 2025 but up 28.74% from Navratri 2024. Two-wheelers accounted for 8,40,696 units (-2.02% YoY), while passenger vehicles reached 1,91,426 units (-18.20% YoY). Commercial vehicles grew 3.90% YoY to 36,596 units, and tractors increased 2.43% YoY to 23,036 units.

EV retails during Navratri 2026 reached 1,19,429 units, up 28.93% YoY. Two-wheeler EVs grew 34.74% to 76,515 units, three-wheeler EVs increased 11.19% to 28,262 units, commercial vehicle EVs surged 98.33% to 1,303 units, and passenger vehicle EVs grew 36.66% to 13,349 units.

Year-to-Date Performance and Market Share

Financial year-to-date (April-October 2026) retails reached 1,87,21,759 units, up 10.07% from the same period last year. Two-wheelers grew 7.81% to 1,33,79,362 units, passenger vehicles increased 16.41% to 30,68,353 units, commercial vehicles grew 18.17% to 7,02,405 units, three-wheelers increased 13.38% to 8,91,835 units, tractors grew 17.72% to 6,37,620 units, and construction equipment increased 4.93% to 42,184 units.

Market share data showed Honda Motorcycle leading two-wheelers with 27.47% share (6,37,630 units), followed by Hero Motocorp at 25.78% (5,98,433 units). In passenger vehicles, Maruti Suzuki maintained leadership with 41.75% share (2,11,996 units), followed by Tata Motors at 14.47% (73,449 units) and Mahindra & Mahindra at 12.80% (64,982 units).

Outlook and Sentiment

Dealer sentiment surveys indicated cautious optimism for November 2026, with 51.65% expecting growth, 34.71% expecting flat sales, and 13.64% expecting decline. This optimism is driven by Dhanteras (November 6) and Diwali (November 8) falling within the month, which is expected to bring the year's biggest retail wave. For the November 2026-January 2027 period, 50.41% of dealers expect growth, 40.08% expect flat sales, and 9.50% expect decline.

Liquidity conditions were reported as good by 47.52% of dealers, neutral by 43.80%, and bad by 8.68%. Sentiment was reported as good by 45.04%, neutral by 43.80%, and bad by 11.16%. The report notes that about 31% of dealers reported moderate or material effects from the first repo rate increase in over three years on financing costs and EMIs.