PV retail sales up 20% in November, inventory down to 44-46 days: Fada

India's passenger vehicle (PV) retail sales posted a 20 per cent rise in November as compared to the same period last year, owing to sustained consumer interest beyond the festive season, the Federation of Automobile Dealers Associations (Fada) said on Monday.

 

Fada President C S Vigneshwar said inventory reduced sharply to 44-46 days, down from 53-55 days, marking healthier demand-supply discipline. This pushed the sales to 394,152 units during the month compared to 329,253 last year. 

 

He said that besides GST benefits, the jump was aided by the marriage season, better supply of high-waiting models, and sustained push from compact sport utility vehicles.

 

On the other hand, two wheeler sales witnessed a dip of 3 per cent in November, along with the sale of construction equipment that declined by 17 per cent during the month. However, commercial sales also increased by 20 per cent, three wheelers by 24 per cent, and tractors by 57 per cent during the month under review. Despite being a post-festive month, this helped the total vehicle retail sales to move up by 2 per cent to 3.3 million units in November this year versus the same month last year.

 

“November ’25 defied the conventional post-festive slowdown, delivering a resilient performance despite an unusually high comparative base. Traditionally, auto retail eases in the month following the festival cycle. However, this year, most festive registrations were completed in October ’25 itself, unlike November ’24, when Diwali and Dhanteras fell in towards the end of October ’24, and vehicle registrations happened in November ’24, which lifted volumes significantly,” Vigneshwar said.

 

“Even with this shift, the industry closed November ’25 at a Y-o-Y growth of 2.14 per cent, reaffirming customer confidence and the structural strength of India’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,” he added.

 

Fada said 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.

 

“Commercial vehicles grew 20 per cent Y-o-Y, supported by select infrastructure activities, freight movement, tourism mobility, government tender cycles and GST reforms, although fleet utilisation remains uneven in select markets,” he added.

 

According to the industry body, the outlook for India’s auto retail over the next three months remains firmly positive, supported by sustained momentum from GST 2.0 tax rationalisation, strong enquiry pipelines, and improving rural economic indicators, as 74 per cent of dealers expect growth underscoring broad-based confidence across segments.

 

“Expected price increases in January, new model launches for 2026, and marriage season demand are set to drive conversions, while crop realisation liquidity is expected to reinforce retail traction across Bharat. The government’s ‘One Nation, One Tax’ and ‘Viksit Bharat 2047’ mobility vision continue to strengthen affordability and expand vehicle penetration in emerging markets,” he said.