GST Benefits, Discounts Boost Post-Festive Sales in India; FADA Reports 2.14% Monthly Growth

-Indian auto retail sales grew 2.14% YoY, with 33.01 lakh units sold overall.
-Passenger, and commercial vehicles recorded strong sales growth of 19.7% and 19.94%, respectively.

Indian auto retail sales experienced a 2.14% year-on-year growth in the month of November, showing sustained demand beyond the festive season, according to the Federation of Automobile Dealers Associations (FADA). While the sales of two-wheelers dipped slightly by 3.1%, the passenger and commercial vehicle demand continued its upward trajectory, posting strong sales growth of 19.7% and 19.94% respectively.

FADA states that the Indian auto sector is expected to maintain steady growth in the near term, supported by strong rural demand, rising farm incomes, and early signs of recovery in tractors, two-wheelers, and FMCG consumption. Additionally, ongoing benefits from GST 2.0 and targeted consumer incentive schemes are likely to sustain high foot traffic in showrooms. Over the next three months, 74% of dealers expect positive sales momentum, driven by healthy enquiry pipelines, upcoming launches, and government initiatives promoting affordable mobility. Although there may be slight dips from model-year updates or fewer festive sales, the industry is poised for a strong and stable start to 2026.

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November 2025 Indian Auto Retail Sales

Retail sales across the Indian auto industry exhibited a mix of trends in November 2025, with 33.01 lakh units, marking a rise of 2.14%. As for the 2Ws, the sales dropped 3.1% year-on-year, showing a slight moderation in urban demand. However, passenger and commercial vehicles continued their strong sales momentum, with growth of 19.7% and 19.94%, respectively. 

The sales of tractors and e-rickshaws surged 56.55% and 20.98%. Meanwhile, three-wheelers recorded healthy gains across both passenger and goods categories, supported by rising last-mile transportation demand. In contrast, construction equipment sales fell 16.5%, impacted by subdued industrial activity.

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FY’26 YTD (April–November 2025) retail data highlights steady growth across the Indian auto industry, with 1.97 crore units sold overall, a rise of 9.36% YoY. Of this, passenger vehicles sold 29.10 lakh units, marking a growth of 8.11%, while commercial vehicles recorded sales of 6.82 lakh units, a gain of 6.95%. The sales of 2Ws reached approximately 1.46 crore units (+9.62%), while 3Ws sold 8.82 lakh units (+6.69%).