FADA says India records 2.14% jump in auto retail sales in November 2025

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Indian auto retail industry registered a YoY growth of 2.14% in November 2025, reaffirming customer confidence and the structural strength of the country’s auto retail market.

GST rate cuts coupled with OEM-Dealer retail offers continued pulling customers to showrooms, enabling sustained footfalls beyond the festive period.

Price reductions across categories, which ignited strong buying in October, continued to support conversions in November as well, said FADA President C S Vigneshwar.

Two-Wheelers, while reporting a modest 3.1% YoY decline, must be viewed in context. A significant retail shift occurred due to festive buying in October, combined with delayed crop payments and uneven supply of preferred models. Encouragingly, dealers continue to report strong walk-ins linked to GST sentiment and healthy marriage season demand.

Passenger Vehicles registered 19.7% YoY growth, supported  by GST benefits, marriage season demand, better supply of higDea-waiting models, and sustained push from compact SUVs, said Federation of Automobile Dealers Association (FADA).

Commercial Vehicles sales increased by 19.94% YoY, supported by select infrastructure activities, freight movement, tourism mobility, government tender cycles and GST reforms..”

Near-Term Outlook

The near-term outlook is supported by improving rural sentiment and favourable macro indicators as there is a strong start to the rabi season, with sowing crossing 39.3 million hectares, significantly ahead of previous  year, driven by robust soil moisture conditions, better seed availability, and supportive MSP signals.

Dealers highlight confidence driven by improved enquiry pipelines, marriage season purchases, better stock availability, rural crop realisation-linked liquidity, and expected year-end consumer schemes.

Overall, industry sentiment for December can best be characterised as “cautious optimism” — a phase where the sector consolidates gains from the GST-led affordability shift and two strong months of retail performance, while remaining watchful of calendar-year dynamics and supply alignment.

Next 3 Months Outlook

The outlook for India’s auto retail for  the next 3 months remains firmly positive, supported by sustained momentum from GST 2.0 tax rationalization, strong enquiry pipelines, marriage season and improving rural economic indicators as 74% of dealers expect growth underscoring broad-based confidence across segments.

The government’s ‘One Nation, One Tax’ and ‘Viksit Bharat 2047’ mobility vision continue to strengthen affordability and expand vehicle penetration in emerging markets.

India’s auto retail ecosystem stands on a foundation of cautious yet robust optimism, poised to consolidate recent gains and accelerate towards a more resilient, inclusive, and future-ready mobility landscape.