India’s passenger vehicle (PV) retail market recorded strong momentum in November, with sales rising 20% year-on-year, according to data released by the Federation of Automobile Dealers Associations (FADA). The growth trend continued even after the festive season, highlighting sustained consumer demand.
FADA President C. S. Vigneshwar noted a significant improvement in inventory levels, which declined to 44–46 days from 53–55 days previously. This reduction points to a healthier balance between supply and demand across dealerships.
During the month, retail sales of passenger vehicles reached 3,94,152 units, compared to 3,29,253 units in November of the previous year. Key contributors to this growth included GST benefits, the ongoing marriage season, steady availability of high-demand models, and rising preference for compact sport utility vehicles.
Segment-Wise Performance
The overall retail performance in November was a mix of gains and declines across various vehicle categories:
- Passenger Vehicles: +20%
- Commercial Vehicles: +20%
- Three-Wheelers: +24%
- Tractors: +57%
- Two-Wheelers: –3%
- Construction Equipment: –17%
Despite the uneven performance across segments, total vehicle retail sales increased by 2% year-on-year, reaching nearly 33 lakh units.
Festive and Market Dynamics
Traditionally, auto sales see a slowdown after the festive period. However, November 2025 displayed resilience despite a high base effect. FADA clarified that while most festive registrations occurred in October this year, the comparison with November 2024 is skewed because the previous year’s festive cycle—including Diwali and Dhanteras—extended into late October, boosting vehicle purchases well into November.
Commercial Vehicle Growth Drivers
The commercial vehicle category saw double-digit growth, supported by:
- Increased infrastructure and construction activity
- Rising freight and logistics movement
- Tourism-related mobility
- Government tender cycles
- Positive sentiments following GST reforms
While fleet utilisation varies across regions, dealer feedback indicates strong customer enquiries and retail momentum linked to the ongoing wedding season and tax benefits.
The latest sales data suggests that the automotive sector is stabilising with improved supply conditions and consistent consumer interest. However, challenges remain in select segments such as two-wheelers, which continue to face pressure from pricing and affordability factors.
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