India’s automobile industry grew only slightly in November, mainly because two-wheeler sales dropped, according to registration data released on Monday.
Scooters and bikes form nearly 75% of all vehicle sales. Their decline pulled industry growth down to 2%, even though cars, commercial vehicles and tractors grew 20%, 20% and 57% respectively.
Why sales fell
Two-wheeler registrations fell 3% as many buyers had already shopped during October’s festive season.
Delayed crop payments and uneven supply of popular models also affected demand.
Still, dealers saw strong customer visits, supported by GST cuts and marriage-season buying.
Registration picture
FADA data from the Vahan portal shows 3.3 million vehicles were registered in November, up from 3.23 million a year earlier.
FADA president CS Vigneshwar said most festive buying happened in October 2025, unlike 2024 when Diwali and Dhanteras fell late and lifted November sales.
Even so, November 2025 recorded 2.14% year-on-year growth.
GST boost
GST cuts and dealer offers kept customers coming in. Price reductions that spurred October buying continued to support November sales.
Passenger vehicle registrations rose 20%, helped by GST benefits, marriage-season demand, better supply of long-waiting models, and steady interest in compact SUVs. Inventory eased to 44–46 days, from 53–55 in October.
CV demand
Commercial vehicle sales remained strong, driven by infrastructure work, freight needs, tourism, government tenders and GST reforms. Fleet usage, however, varied across markets.
Positive outlook
Vigneshwar said improving rural sentiment and strong macro indicators should support near-term sales.
Rabi sowing has crossed 39.3 million hectares, ahead of last year, and a colder-than-usual winter forecast for northern and central India may increase mobility and logistics needs, helping the market further.
