Two-wheeler (2W) retail sales recorded a robust 22% growth to around 41 lakh units during the festive season, supported by festive cheer, steady rural demand, and GST rate reductions. Dealers reported a notable rise in footfalls and bookings, further boosted by attractive discounts and offers. This festive season growth follows a relatively subdued performance in H1 FY2026 (0.7% YoY), making the recent uptick significant.

Passenger vehicle (PV) retail sales during the festive season grew at a strong pace of 21% YoY to 8.1 lakh units, supported by attractive discounts, GST rate reductions, and competitive financing options. With robust retail sales during the festive season, the industry’s inventory levels are estimated to have moderated to around 45-50 days by the end of October 2025 (as per ICRA estimates).