India’s retail car sales surged by 32.4% in October, driven by high demand during the festive season, especially for SUVs, alongside new model releases and attractive offers. According to the Federation of Automobile Dealers Association (FADA), sales by dealers to customers reached 483,159 units, a significant jump from 364,991 units in the same period last year.
This year’s festival season began earlier, in early October, unlike mid-October last year. This timing boosted October sales as many Indians consider this period auspicious for major purchases. While retail sales experienced double-digit growth, wholesales—manufacturer sales to dealers—remained flat, with SUVs showing the strongest performance.
The robust sales pace also resulted in faster showroom turnover, with average inventory days dropping to 75–80 from previous levels, though still above the recommended one-month level. To manage high stock levels, dealers are expected to maintain discounts until year-end.
Unsold inventory primarily consists of small cars, though SUVs are increasingly part of the surplus. Unusual weather conditions, including extreme heat and heavy rains earlier in the year, contributed to reduced showroom visits, with many customers waiting for festive season offers.
FADA plans to release a broader sales report on November 14, covering a 42-day period from October to November to better reflect the varied festival dates compared to last year.
