Key Highlights

  • Festive sales: Nearly 11.23 lakh vehicles were sold over the 10-day Navratri period, as per FADA.
  • Strong growth: Sales were up about 27% over Navratri 2024; two-wheelers rose over 32% and passenger vehicles over 10%.
  • EV milestone: EV retail grew 26.78% and now makes up about 10.5% of festive sales, up from 7.7% a year ago.
  • Dip explained: The 6.52% fall versus Navratri 2025 is due to one fewer day and last year’s GST 2.0 demand rush, FADA says.
  • Record September: Retail sales hit an all-time high of 25,36,920 units, up 31.82% YoY.

Navratri has long been one of the busiest times for buying new vehicles in India, and 2026 was no exception. According to data from the Federation of Automobile Dealers Associations (FADA), close to 11.23 lakh vehicles were sold over the 10-day festive period.

Retail sales were up nearly 27 per cent compared with Navratri 2024, which FADA calls the last truly comparable festive period. Passenger vehicle sales rose by more than 10 per cent, while two-wheeler sales jumped over 32 per cent.

Why Sales Look Lower Than Last Year

Compared with Navratri 2025, sales were down 6.52 per cent. But FADA says this decline does not reflect weak demand.

“The marginal 6.52 per cent dip versus Navratri 2025 is largely optical: last year Navratri ran 11 days against 10 and coincided with the GST 2.0 roll-out, which pulled a wave of pent-up demand into one extraordinary window,” said FADA President Sai Giridhar.

In simple terms, last year buyers had waited for GST rates to come down and then rushed to buy during Navratri, creating an unusually high base.

EVs Are the Real Story

The biggest takeaway is the rise of electric vehicles. EV retail sales grew 26.78 per cent and now account for about 10.5 per cent of festive sales, up from roughly 7.7 per cent a year ago. FADA said this shows India’s EV shift has become self-sustaining.

This means roughly one in every ten vehicles bought during the festival was electric, a clear sign that buyers are becoming more comfortable with EVs, especially in the two-wheeler segment.

September Sets New Records

The festive mood also lifted September numbers. Domestic retail sales rose 31.82 per cent year-on-year to a record 25,36,920 units, making it the industry’s best-ever month. Sales were also up 4.69 per cent from August.

FADA cautioned that the annual growth looks bigger because September 2025 sales were hit by buyers delaying purchases ahead of GST 2.0.

Segment-Wise Performance in September

  • Two-wheelers: 17,90,188 units, up 33.08%
  • Passenger vehicles: 4,27,213 units, up 32.10%
  • Commercial vehicles: 1,03,557 units, up 37.62%, crossing one lakh for the first time

The industry posted its best-ever September in five of six vehicle categories. The first half of FY27 also saw record sales of 1,55,12,319 units, up 20.77 per cent.

Why It Matters

Vehicle sales are a strong signal of consumer confidence. Rising two-wheeler demand points to recovery in rural and small-town India, while record commercial vehicle sales suggest strong business activity and goods movement.

What Comes Next

FADA is “cautiously optimistic” about the Dhanteras-to-Diwali season. “Affordability is strong, aspiration is rising, and auto retail continues to mirror the enduring momentum of the India Growth Story,” Giridhar said.

With inputs from IANS.