Retail auto sales rise on high base this Navratri, but cars see 14% drop

Overall automobile retail sales between October 11 and 19 stood at 1.032 million units, compared with 1.012 million units during September 22-30 last year, the corresponding first nine days of Navratri. Two-wheeler sales rose 6 per cent to 759,684 units, pointing to continued strength in rural demand, while commercial vehicle sales increased 14 per cent to 34,120 units. Passenger vehicle sales, by contrast, fell to 172,087 units from 199,320 units during the corresponding period last year.  

This mixed performance needs to be viewed in context an exceptional festival season in 2025.  

GST 2.0 took effect on September 22, 2025, coinciding with the first day of Navratri, after many buyers had deferred purchases in anticipation of lower prices. The release of this pentup demand helped lift overall automobile retail sales by 34 per cent during the previous Navratri season. 

Against that backdrop, the modest increase in sales during the first nine days of Navratri this year suggests that demand has remained relatively resilient, although passenger vehicles have lagged. Final registration numbers, however, are awaited. 

Final registration data for the period up to October 20, including Dussehra, are expected to be updated after two days, as registrations from rural areas may take longer to appear on the Vahan portal. In broader comparison, it must be mentioned that the Navratri to Dussehra lasted 11 days last year, ending October 2, compared with 10 days this year. 

“We expect (the 10-day Navratri-Dussehra) sales to be marginally down this year, as we had an exceptional year in 2025 because of the GST boost. Even after factoring that in, this year’s numbers are almost matching last year, which is a continuation of the industry momentum that we have seen in 2026. During the first nine days, sales are up, except for passenger vehicles, and final numbers are awaited,” said Sai Giridhar, president of Fada. 

Data accessed by Business Standard from the government’s Vahan portal shows that the final two days of last year’s Navratri-Dussehra accounted for 189,387 vehicle registrations, a level that may have been difficult to match this year. 

The 2024 season offers another point of reference. Overall automobile retail sales during Navratri that year stood at 863,327 units, including 161,443 passenger vehicles. 

About the 2025 high base, an industry source said many buyers had postponed purchases after Prime Minister Narendra Modi announced plans for GST 2.0 in his Independence Day speech on August 15, 2025. The announcement led consumers to wait for the tax changes to take effect on September 22, creating pentup demand during the festival season. 

Echoing the view, Giridhar said: “For more than a month, until September 22, people tried to postpone their purchases. This resulted in pentup demand during the festival season. Hence, comparing last year with this year is not a fair comparison.” 

Three-wheeler sales declined 1.65 per cent to 43,057 units during the nine days of this year’s Navratri period. Other segments recorded growth: Construction equipment sales rose 11 per cent to 2,185 units, while tractor sales increased 9 per cent to 20,912 units. 

“It is too early to comment on sales numbers. However, some states, such as Andhra Pradesh, are seeing strong growth compared with last year, particularly in two-wheelers. This suggests that rural India may be performing well,” an industry expert said.