India’s auto retail market has continued its strong run even after the festive season, with both two-wheelers and passenger vehicles logging impressive year-on-year gains. According to Vahan data for November 11–27, two-wheeler registrations were up 38%, while passenger vehicle registrations grew 31% compared with the post-festive period of November 22–December 8, 2024.
The sustained strength comes on the heels of a historic October, when retail sales surged 40.5% YoY to an all-time high of 40.2 lakh units. Analysts attributed the record month to a rare mix of GST 2.0 tax reforms, clustered festivals, and a revival in rural spending, which together created one of the biggest demand waves in India’s automotive history. Festive-window retail sales (42 days) also rose 21% YoY, setting new records in both volume and growth.
Despite concerns of a post-festive slowdown, demand has held firm. For April–November 2025, Vahan registrations show 10% growth in two-wheelers and 8% growth in passenger vehicles. Analysts expect that the growth required in the remaining months of FY26 is now minimal.
FADA’s dealer survey indicates that momentum will likely continue through November, though with natural moderation after October’s peak. 64% of dealers expect growth this month, and 70% anticipate expansion through January 2026. Two-wheeler dealers cited rural liquidity and wedding-season demand; PV dealers highlighted strong undelivered festive bookings.
FADA said, “Strong rural cash flows post-harvest, marriage-season demand, and improved stock availability across categories are expected to sustain retail momentum in the near term.” It also pointed to upcoming launches, healthier financing conditions, and stable fuel prices as supportive factors.
Elara Capital’s Jay Kale noted that the sector needs only 7% YoY growth in December–March for two-wheelers and 1% for passenger vehicles to meet Elara’s FY26 projections of 9% 2W growth and 5.5% PV growth. He added that the post-festive trend signals steady underlying demand as dealership inventories gradually normalise.
