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Why India’s Auto Market Refused To Slow Down After Diwali

Auto sales surprised in November, growing 2.14% year-on-year as PV and CV demand stayed strong and rural sentiment improved.

Updated on: Dec 09, 2025 11:57 AM IST
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India’s vehicle retail market showed steady performance in November 2025, according to new data from the Federation of Automobile Dealers Associations (FADA). Overall sales were up 2.14 percent compared to November last year. A slowdown is usually expected after the festive season, but this year, most festive purchases were already completed in October. In 2024, many registrations were pushed to November because Diwali fell late, which made last year’s numbers much higher than usual.

Why Did Two-Wheelers See a Drop?

With sales improving, dealer stock levels also came down to about 44–46 days from more than 53 days last month.
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With sales improving, dealer stock levels also came down to about 44–46 days from more than 53 days last month.

Two-wheeler sales fell by 3.1 percent year-on-year. Dealers said this was mainly because many customers bought their bikes during the festive period in October. In addition, some farmers received delayed payments, and certain popular models were not easily available. Even with this dip, showrooms continued to see good customer visits due to wedding season demand and lower prices following recent tax changes.

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Passenger Vehicles Drive Momentum

Passenger vehicle sales saw strong growth of nearly 20 percent. Better prices, improved supply of vehicles with long waiting periods, and continued demand for compact SUVs helped push numbers higher. With sales improving, dealer stock levels also came down to about 44–46 days from more than 53 days last month.

Commercial Vehicles Pick Up Pace

Looking ahead, dealers feel positive about the coming months, especially because rural conditions are improving. Farmers have started sowing for the rabi season earlier and at a higher level than last year, crossing 39.3 million hectares. Good soil moisture and better seed supply are expected to result in improved earnings for farmers. Weather forecasts also point to a colder winter in northern and central India, which could increase travel and transport demand.

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What Dealers Expect in December

For December, dealers expect stable sales driven by wedding purchases, improved cash flow in rural areas, better vehicle availability, and year-end discount offers. While some higher-priced vehicles in city markets may see slower demand, overall business confidence remains steady.

The Next Three Months: What’s Coming?

For the next three months, around 74 percent of dealers expect sales to grow, supported by upcoming new vehicle launches, possible price hikes in January, continued tax benefits, and stronger rural spending.

 
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