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India’s vehicle retail sales during Navratri 2026 declined

ICICIdirect Research 22 Oct 2026 DISCLAIMER

News: According to FADA, India’s vehicle retail sales during Navratri 2026 declined by 6.52% to 11.23 lakh units, compared with 12.01 lakh units during Navratri 2025. Passenger vehicle sales fell by 21.9% and two-wheeler sales by 2.8%, while commercial vehicle sales grew by 1.12%. In contrast, electric vehicle retail sales increased by 26.8% to 1.17 lakh units, driven by strong growth across two-wheelers, three-wheelers and passenger vehicles.

View: The headline decline of 6.52% in vehicle retail sales should not be interpreted as demand moderation, as Navratri 2026 covered 10 days compared with 11 days in 2025 coupled with GST 2.0 led huge pent up in retail volumes. Interestingly, compared with Navratri 2024, total vehicle retail sales grew by 26.76% over two years, highlighting the sector’s longer-term expansion. EV retail sales recorded even stronger growth of 83.06% over 2024, reflecting accelerating electric mobility adoption. However, with substantial increase in EV sales, supply is lagging the demand in EV space. While the shorter festive period affects the YoY comparison, the daily sales improvement and strong two-year growth suggest a positive underlying trend, although the sharp decline in passenger vehicle sales remains a concern.

Impact: Neutral

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