IGI Logo

Automobile Market Trend: Auto Retail Faces High-Base Pressure Despite Festive Demand

The automotive industry recorded a 21.5% YoY decline in retail sales during 1–22 October 2026, with weakness across key segments. 2W sales fell 23.4% YoY, while PV sales declined 23.5% YoY. CV and 3W sales decreased by 3.6% and 6.3%, respectively, while tractor sales were up by 2.9% YoY. The decline largely reflects a high base in October 2025, when GST 2.0 implementation on 22 September 2025 triggered a surge in deferred purchases during the festive period.

The outlook for H2FY27E remains cautiously optimistic, supported by improved affordability following GST rationalisation, favourable financing conditions, new model launches and festive demand. However, growth is likely to moderate against last year’s elevated base, with inflationary pressures, the sustainability of retail demand and inventory discipline remaining key monitorables

Disclaimer: VAHAN retail sales data is dynamic in nature; October volumes are provisional and reflect registrations reported up to October 22, 2026. Final figures are subject to change and will be updated as additional registrations are recorded. Historically, for October, the last seven days have accounted for ~24–25% of the volume (for Oct-25, the last seven days accounted for ~38% of the total volume due to deferred purchases).

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimer

SEBI Registration no.: INZ 000160131