Annual decline of 14.23 per cent in passenger vehicle sales in India

Significant fluctuations have been observed in sales figures in the Indian car market during the month of October. According to the latest figures released by the Federation of Automobile Dealers Association (FADA), a total of 5,07,768 passenger vehicles were sold across the country in October. However, compared to the same period last year, this figure shows a decline of 14.23 per cent. A total of 5,92,032 passenger vehicles were sold in October last year.

Despite this decline, the automobile sector has maintained a positive monthly trend. Compared to September, a jump of 18.86 per cent was recorded in sales in October. A total of 4,27,213 passenger vehicles were sold in September, which increased to 5,07,768 in October. According to experts, these figures should not be viewed as a lack of demand in the market, as certain specific reasons are responsible for this situation.

According to the FADA report, both Navratri and Diwali festivals coincided in October last year, due to which the sales figure remained very high. Additionally, the reduction in tax rates under GST 2.0 had also increased the purchasing power of consumers. Since the Diwali festival is in November this year, many consumers had postponed their purchases for some time, which has been directly reflected in the October sales figures.

Sales have increased in both urban and rural markets, but urban areas performed better. Compared to September, retail sales of cars in urban areas increased by 20.10 per cent and their share in total sales remained 61.7 per cent. On the other hand, a monthly increase of 16.90 per cent was recorded in the rural market, which is about 38.3 per cent of total sales.

The biggest change in October was observed in consumer fuel preference. For the first time, the combined market share of CNG, hybrid, and electric vehicles has exceeded that of petrol and ethanol-blended vehicles. According to the figures, the share of petrol and ethanol-blended vehicles decreased to 41.60 per cent in October, which was 48.96 per cent in October 2025. In comparison, the share of vehicles with alternative fuels increased to 41.83 per cent.

The contribution of CNG cars was the highest at 24.59 per cent in this increase. Additionally, the share of hybrid vehicles was recorded at 9.94 per cent and the share of electric cars at 7.30 per cent. The share of diesel vehicles remained 16.57 per cent. The main reasons behind this changing trend of consumers are the rising prices of petrol and diesel and the discussions surrounding E20 fuel. It has also been acknowledged by the government that the use of E20 fuel can lead to a decrease in vehicle mileage by 3 per cent to 6 per cent. Additionally, the fear of damage to parts of old vehicles has also turned buyers towards other options.

The Federation of Automobile Dealers Association (FADA) is the apex representative body of automobile dealers in India. This organisation works to protect the interests of automobile dealers across the country and to present their issues before the government. FADA regularly collects and analyses the sales figures of the Indian automobile market, which are considered important for industry growth and policy formulation.