Indian Auto Sales Hit Record High in October; Dealers Expect Strong Year-End Demand

India’s automobile retail sales surged 40.5% year-on-year in October to an all-time high, according to the Federation of Automobile Dealers Associations (FADA). The growth followed the implementation of goods and services tax (GST) cuts on September 22 and was further fueled by robust rural demand and festive season purchases.

FADA reported that vehicle sales in rural areas grew three times faster than in urban regions, while two-wheeler sales doubled in pace. The 42-day festive season, encompassing Dussehra and Diwali, saw overall retail sales rise 21% from last year, led by a 22% increase in two-wheeler sales and a 23% jump in passenger vehicle sales.

Looking ahead, optimism remains high among dealers, with 64% expecting further sales growth in November and only 8% anticipating a decline. FADA attributed the positive outlook to the ongoing marriage season, strong harvest cashflows, and new vehicle launches expected to sustain momentum through the end of the year.

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