Passenger Vehicle Retail Sales Surge 20% in November, Inventory Levels Drop: FADA

The Federation of Automobile Dealers Associations (FADA) reported a notable 20% increase in passenger vehicle (PV) retail sales in November compared to the same period last year. This growth is attributed to sustained consumer interest beyond the festive season. 

Factors Driving the Sales Increase 

FADA President C S Vigneshwar highlighted that inventory levels have decreased significantly to 44-46 days from the previous 53-55 days, indicating a healthier demand-supply balance.  

This reduction in inventory contributed to the sale of 3,94,152 units in November, compared to 3,29,253 units last year. The rise in sales was supported by GST benefits, the marriage season, improved supply of high-demand models, and a strong push from compact sport utility vehicles. 

Mixed Performance Across Vehicle Segments 

While PV sales saw a boost, two-wheeler sales experienced a 3% decline in November. Similarly, the sale of construction equipment dropped by 17% during the month.  

However, commercial vehicle sales increased by 20%, three-wheelers by 24%, and tractors by 57%. Despite being a post-festive month, these figures helped total vehicle retail sales rise by 2% to 33,00,000 units in November compared to the same month last year. 

Impact of Festive Season and GST Reforms 

November 2025 defied the typical post-festive slowdown, delivering a resilient performance despite a high comparative base.  

Traditionally, auto retail slows down after the festival cycle. However, this year, most festive registrations were completed in October 2025, unlike November 2024, when Diwali and Dhanteras fell towards the end of October 2024, boosting vehicle registrations in November 2024. 

Read More: Nov 2025 Auto Sales: Tata Motors, Maruti Suzuki, and M&M Posted Double-Digit Growth! 

Commercial Vehicle Growth and Market Dynamics 

Commercial vehicles grew by 20% year-on-year, supported by infrastructure activities, freight movement, tourism mobility, government tender cycles, and GST reforms.  

However, fleet utilisation remains uneven in select markets. Dealers continue to report strong walk-ins linked to GST sentiment and healthy marriage season demand. 

Conclusion 

The 20% rise in PV retail sales in November, along with a reduction in inventory levels, highlights the positive impact of GST benefits, marriage season demand, and improved supply of high-demand models. Despite mixed performance across different vehicle segments, the overall vehicle retail sales saw a 2% increase, demonstrating resilience in the Indian auto market. 

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