Car Sales October 2026 Fall 14.2% as EVs and Hybrids Gain Share

If you want to purchase a new car this holiday season, you can find valuable insight into the Indian market from the car sales for October 2026. Although retail registrations were down 14.23% year-on-year at 507,768 units, they were up 18.86% on month, with the electric and hybrid segment gaining share. The numbers below are FADA retail registrations based on the registrations done in India, which differ from the wholesale dispatch information released by auto manufacturers.

October 2026 Car Sales Overview

The market is below last year's level, but October 2025 was an unusually strong base. It included Navratri and Diwali, along with pent-up demand after the GST 2.0 rate cuts.

FADA also notes that the main festive wave, from Dhanteras to Diwali, is still ahead.

Why Car Sales Fell in October 2026

The decline looks sharp on paper, but FADA points to timing and comparison effects rather than a collapse in demand.

• High Base Effect: The month of October of 2025 was a double celebration of Navratri and Diwali and the moment of increased demand post-GST 2.0 rate cut, thus making it hard to match the numbers from last year.
• Festive Timing: As for this year, the Navratri window appears to have seen sales of 191,426 units, down 18.20% YoY and up 15.64% from 2024, with some more major sale days yet to go.
• Segment Mix: Utility vehicles and new launches have contributed to the demand levels while the mini-segment suffered.
• Supply Gaps: The dealers report that certain models are difficult to get this year thus hindering retail although the demand exists.

Maruti Suzuki

Maruti Suzuki retained its leading status at the top of the charts, despite its share of the market slipping a bit compared to last year. The company still manages to sell more than 40% of the cars in the country, thus ensuring its lead over the competitors.

October 2026 Sales Performance

Key Market Highlights

• Clear Leader: Maruti owns more than 40 percent of total cars registered in India.
• Share Pressure: Its share edged down as rivals with strong SUV and EV line-ups gained ground.
• Entry-Level Weakness: FADA notes that entry-level cars were weaker during the month.

Tata Motors

Among the biggest five brands, Tata Motors performed the best last month. A combination of petrol, CNG and electric SUV offerings helped it suffer the least losses compared to its competitors.

October 2026 Sales Performance

Key Market Highlights

• Smallest Decline: Tata recorded the smallest fall among the top five.
• Share Gain: Its share rose almost a full percentage point.
• EV Strength: Reports put Tata's EV retail at 14,654 units, its second-highest month on record.

Mahindra

Mahindra held third place and improved its share despite the market decline. Strong utility vehicle demand worked in its favour, and its electric line-up kept adding volume.

October 2026 Sales Performance

Key Market Highlights

• Share Gain: Mahindra's share rose from 12.46% to 12.80%.
• SUV Demand: FADA says utility vehicles supported the market during October.
• Electric Milestone: Reports note its best e-SUV month, at 8,541 units.

Hyundai Motor India

Hyundai had a tougher month than the other top brands. The carmaker lost ground on both volume and share, which keeps the pressure on its upcoming launches to win buyers back.

October 2026 Sales Performance

Key Market Highlights

• Steepest Fall: Hyundai recorded the sharpest year-on-year decline among the top five.
• Fourth Place: It remains in fourth position, ahead of Kia.
• Share Slip: Its share dipped by about 0.3 percentage points.

Kia India

Kia stayed in fifth place with a small gain in share.

October 2026 Sales Performance

Key Market Highlights

• Consistent Performance: Kia attained a good position even while registrations dropped. 
• Fifth Place: It ranked fifth among the major brands. 
• Widening Disturbance: There is a sizable 27,000 unit gap between it and Hyundai.

Toyota Kirloskar Motor

Toyota had the weakest month among the larger brands.

October 2026 Sales Performance

Key Market Highlights

• Sharp Decline: Toyota fell about 25% year-on-year.
• Share Loss: Its share dropped by 0.82 percentage points.
• Sixth Place: It sits just behind Kia in the rankings.

Other Brands to Note

Two smaller brands stood out for different reasons. JSW MG Motor recorded 7,082 units, up about 5% year-on-year, for a 1.39% share. VinFast reached 2,571 units from just 142 a year earlier, giving it a 0.51% share and the largest percentage jump in the market, though from a very small base.

Inventory and Dealer Outlook

Dealer stock stood at about 43-45 days, unchanged from September, even though manufacturers dispatched record volumes to showrooms. FADA expects the Dhanteras-to-Diwali retail wave to bring stock down to roughly 30 days by the end of the calendar year.

• Growth Expectations: 51.65% of dealers expect growth in November.
• Post-Festive Lull: Some dealers expect a quieter period once Diwali ends.
• Financing Costs: The first repo-rate increase in over three years worries dealers, with about 31% reporting a moderate or material effect on EMIs.
• Urban and Rural: Urban retail fell 15.30% and rural fell 12.44% year-on-year, with both recovering from September.

EV and Hybrid Share in October 2026

The fuel mix shifted away from petrol, and both electric and hybrid cars gained share.

• EV Record: Electric cars reached about 37,000 units, up from roughly 21,000, which FADA called a record in October.
• Hybrid Growth: Hybrids are estimated to have grown about 23% even as the total market fell.
• Supply Limit: FADA says supply, not demand, remains the main constraint on EVs.

Conclusion

Car sales in October 2026 reflect a market downturn compared to last year's growth spurt, but essential growth is seen from month to month. Tata and Mahindra have increased market share, while Maruti continues to retain the leading position, with electric vehicles contributing to 7.30% of total car registrations. As the peak festive season from Dhanteras to Diwali is still ahead, customers are advised to make price comparisons and check for the availability of electric vehicles early on.