Passenger Vehicle Retail Soars 20% in November; Inventory Drops to 45 Days: FADA

India’s passenger vehicle (PV) market posted another strong month in November 2025, with retail sales rising 20% Year-on-Year (YoY) even as dealer inventory tightened to roughly 44–46 days. According to the Federation of Automobile Dealers Associations (FADA), demand held firm despite the post-festive cooldown, supported by the recent Goods and Services Tax (GST) cuts, wider availability of popular models and steady footfall driven by the ongoing wedding season.

Dealers across major markets reported that enquiries stayed buoyant through the month, aided by year-end purchase sentiment and brisk stock rotation, according to FADA. Many said that inventory, which had earlier hovered above 53–55 days, was now being cleared more efficiently, easing working-capital pressure across the retail chain.

FADA president C.S. Vigneshwar said the sector is witnessing a clear structural shift. Reflecting on October’s record highs, he noted that policy reforms, festival-season spending and a visible rural recovery had injected “renewed consumer confidence” and “healthy economic undercurrents” into the auto market. In November, he added, this momentum was further reinforced by “harvest-linked liquidity”, “seasonal wedding purchases” and “fresh model introductions”.

Also read: India Auto Sales Accelerate in November 2025 as GST Cut, Festive Demand Boost Carmakers | Republic World

Segment Performance: PVs lead; Two-Wheelers, CE lag

PV retail reached 394,152 units during the month, compared with 329,253 units a year earlier — a strong indication, FADA stated, that demand is stabilizing beyond just festive-season spikes. Lower GST rates continued to lift affordability, while improved dispatches of long-waiting compact SUVs added further support.

However, performance across segments was mixed. Two-wheeler retail contracted 3% in November, reflecting demand softness in several rural pockets. Construction-equipment sales also dropped 17%. In contrast, commercial vehicles grew 20%, three-wheelers expanded 24%, and tractors delivered a sharp 57% jump. These gains helped push overall vehicle retail up by 2% to about 3.3 million units compared with November last year — an impressive outcome for a period typically quieter after the festive peak.

The November performance capped an already powerful run for India’s auto retail market. In September, PV sales grew a moderate 5.8% for the month but surged nearly 35% during the Navratri nine-day window, driven by the first benefits of GST cuts on two-wheelers and cars.

Momentum Began in September with festive surge

October subsequently delivered a historic record: overall auto retail jumped 40.5% Year-on-Year (YoY), and car registrations hit 5.57 lakh units — the highest ever recorded by dealerships in a single month. That month also saw PV inventory ease to 53–55 days, marking the beginning of a more balanced supply pipeline.

With November extending the trend — strong demand and tighter inventory — FADA believes that the upcycle may be broad-based rather than a temporary festival surge. The sharper inventory correction, combined with consistent retail growth, signals that the market may be entering a more sustainable period of expansion.