Automobiles – Monthly Update – Demand Sustained, All Eyes on Festive Conversion
Published on 02 Nov 2026
Auto dispatches in Oct’26 remained resilient even as retail sales declined YoY due to deferred buying and earlier festivities last year. PV sales was buoyed by strong order backlog of MSIL along with other OEMs reporting their highest ever monthly wholesales. PV inventories seem to have risen further to the last reported ~44 days at the end of Sep’26 vs. ~39/34/33 days at the end of Aug’26/Jul’26/Jun’26. Alternative fuel penetration (EV/hybrid/CNG) in PV retail remained similar to petrol, while that for e2Ws slightly moderated to ~10%, and e3W penetration hovered near 65%. The CV industry continued to report strong performance driven by MHCV truck sales boosted by festive demand, infra-activities and healthy freight movement, with long-term drivers of replacement demand and economic activity to further support growth. Tractors declined YoY on a strong base, shift in festivities and patchy monsoons, but grew MoM. Festive conversion, rural demand, geopolitical uncertainties, supply chain disruptions and elevated input/ fuel prices will be key monitorables going forward.
