India's auto retail sales tumble 23.8% in October on high base

India's automobile retail sector contracted 23.8 per cent year-on-year in October, with total sales reaching 31.72 lakh units, new data showed on Wednesday. The decline was driven by weakness across vehicle categories, with two-wheeler registrations falling 28.35 per cent to 23.21 lakh units and passenger vehicle sales dropping 4.23 per cent to 5.08 lakh units during the month.

However, industry analysts cautioned against reading the figures as an indicator of fundamental demand deterioration. The sharp contraction largely reflects a shift in the festive calendar, with Dhanteras and Diwali falling in November this year compared to October in the previous year, when both Navratri and Diwali occurred together. Additionally, October 2023 benefited from pent-up demand following GST rate cuts implemented in September.

"October remains India's largest retail month of the year, but this year's performance must be evaluated in the context of calendar timing," said FADA President Sai Giridhar. "The year-on-year comparison is largely optical, with last October representing an exceptional period driven by dual festive events and the post-GST demand surge," he added, suggesting that the underlying demand trajectory remains resilient as consumers shift their purchasing to November's festivities.