Auto retail momentum sustains beyond festive season; PVs, CVs and tractors lead growth

Despite a high base effect and the end of the festive buying window, India’s automobile retail sector continued its steady upward trajectory in November 2025. Overall auto retail sales grew 2.14% year-on-year (YoY), reflecting resilient consumer demand and improving market sentiment, according to the latest retail data released by the Federation of Automobile Dealers Associations (FADA).

The performance highlights a clear divergence across segments, with strong growth in passenger vehicles, commercial vehicles and tractors offsetting weakness in the two-wheeler and construction equipment categories.

Segment-wise Performance Snapshot

• Passenger Vehicles (PV): Sales surged 19.7% YoY, supported by sustained urban demand, improved model availability and growing interest in electric and hybrid vehicles.
• Commercial Vehicles (CV): Retail sales rose 19.94% YoY, driven by logistics demand, infrastructure activity and replacement buying.
• Three-Wheelers (3W): Registrations increased 23.67% YoY, aided by last-mile mobility demand and expanding EV adoption.
• Tractors: The standout performer, with sales jumping 56.55% YoY, reflecting strong rural enquiries, favourable farm sentiment and pre-season buying.
• Two-Wheelers (2W): Sales declined 3.1% YoY, largely due to a retail shift into October, selective supply constraints and cautious entry-level demand.
• Construction Equipment (CE): Retail volumes fell 16.5% YoY, indicating a temporary slowdown in project execution and dealer inventory adjustments.

Key Demand Drivers

FADA noted that demand in November was supported by several structural and sentiment-driven factors:

• Positive GST sentiment following compliance clarity and smoother processes
• Rising EV traction across passenger vehicles and three-wheelers
• Healthy rural enquiries, particularly benefiting tractors and entry commercial vehicles
• Stable financing availability, aiding higher-ticket vehicle purchases

Although two-wheeler sales faced short-term headwinds, the broader market demonstrated stability, suggesting that consumer confidence remains intact even beyond the traditional festive period.

Outlook

With year-end buying, continued EV launches and improving rural liquidity, the auto retail sector is expected to maintain moderate growth momentum in the coming months. However, segment-wise performance is likely to remain uneven, influenced by supply-side dynamics, interest rates and evolving consumer preferences.