India’s automobile industry recorded its best-ever performance in October, reflecting a strong revival in domestic consumption that could cushion the impact of weaker exports to the U.S. According to the Federation of Automobile Dealers Associations (FADA), overall retail sales across all vehicle categories surged 40.5% year-on-year.
FADA President C.S. Vigneshwar said both passenger vehicles and two-wheelers hit all-time highs, indicating renewed consumer confidence and robust economic momentum. Passenger vehicle sales rose 11% to 557,000 units, while two-wheeler sales jumped 52% to 3.15 million, supported by rural demand, GST cuts, and festive buying.
The auto sector contributes 7.1% to India’s GDP and nearly half of manufacturing GDP, making the country the world’s fourth-largest automobile producer. Maruti Suzuki, Hyundai, Tata Motors, and Mahindra remain market leaders.
Rural India led the recovery, with passenger vehicle sales in smaller towns growing over three times faster than in cities. Two-wheeler sales also nearly doubled urban growth, and dealers expect demand to stay strong in the coming months.
