India's auto retail sales dropped 6.52% to 1.12 million units during the recent Navratri festival. While passenger and two-wheeler segments saw a decline due to a shorter festival window and a high base effect, electric vehicles showed strong resilience with 27% growth. Automakers are now looking toward Diwali sales to recover momentum.
The Indian automobile industry reported a mixed festive performance during the recent Navratri period, with data from the Federation of Automobile Dealers Associations (FADA) indicating a 6.52% decline in total retail sales to 1,123,086 units. This cooling in sales is largely attributed to a shorter ten-day festival window this year compared to the eleven-day duration in 2025. Additionally, the industry faced a challenging year-over-year comparison because of exceptionally high demand in the previous year, which was partly driven by the rollout of GST 2.0.
Passenger vehicle sales experienced the most significant pressure, falling 22% to 182,728 units. The two-wheeler segment, which often serves as an indicator of broader consumer spending, also saw a modest decline of 3%, totaling 834,075 units. Similarly, three-wheeler sales dropped by 7.5% to 45,735 units. Despite these dips, commercial vehicle sales showed signs of resilience, recording a slight increase to 35,618 units, which suggests that demand in logistics and infrastructure sectors remains steady.
A notable shift in consumer preference was evident in the electric vehicle (EV) category. Retail sales for EVs surged by 27% compared to the same period last year, capturing a 10.5% share of the total festive market. This consistent growth highlights a transition where electric mobility is moving from a niche segment to a mainstream preference among Indian buyers. For major manufacturers, this shift toward electrification is becoming an important strategy to balance the volatility seen in traditional internal combustion engine vehicle sales.
Despite the headline decline in retail numbers, major automakers remain focused on the upcoming Dhanteras and Diwali period. Companies like Maruti Suzuki India have reported a healthy pending booking pipeline, which grew to 270,000 units from 200,000 units at the start of October. Executives at Hyundai Motor India and Tata Motors have noted that showroom activity remains positive, and they expect the current order books to help sustain delivery volumes.
The next important monitorable for the industry will be the sales performance through the final leg of the festive season. Investors and analysts will be tracking whether the momentum during Diwali can effectively offset the festive slowdown seen during Navratri and how inventory levels at dealerships are managed after the festive push concludes. The sector's ability to maintain growth will depend on consumer sentiment, ongoing demand for new models, and the pace of EV adoption.