October Auto sales up 32% amid festive demand: FADA

India’s auto market saw a 32% year-on-year growth across all vehicle categories, as reported by the Federation of Automobile Dealers Associations (FADA) on Wednesday.

The two-wheeler segment led the charge with a 36% YoY increase in sales. The surge was fueled by the convergence of major festivals like Navratri and Diwali, which spurred consumer purchasing. Additionally, the growth was bolstered by favorable festive discounts, new model introductions, and better stock availability. Rural demand, in particular, played a critical role in driving two-wheeler sales, as higher Minimum Support Prices (MSP) for Rabi crops improved farmers’ purchasing power.

Passenger vehicles (PVs) also performed well, with sales up by 32% year-on-year. High consumer demand, competitive discounts, and the popularity of new SUV models underpinned this growth. However, dealer inventory levels remain high, ranging between 75 to 80 days, which could lead to continued discounting to clear stock by year-end.

Commercial vehicle (CV) sales recorded a modest 6% increase, partly driven by agricultural demand and bulk container orders. The segment faced challenges from slower construction activities and rising vehicle prices, which kept growth limited.

Three-wheeler and tractor sales showed steady gains, with year-on-year increases of 11% and 3%, respectively. Continued demand for mobility and agricultural support helped maintain growth in these areas.

Looking forward, the report highlighted that the auto industry remains optimistic about near-term growth, with the upcoming wedding season expected to further boost sales.

However, FADA cautioned that potential challenges, such as inventory overstock and broader economic uncertainties, could slow momentum toward the end of the year. The industry may face increased pressure to offer discounts to manage stock levels and maintain sales as it moves into the final quarter.