Motown is dealing with slowing sales of two-wheelers

Lower sales of two-wheelers reduced India’s auto industry growth to a low single-digit increase in November compared to a year earlier, vehicle registration data released on Monday showed.Scooters and bicycles account for three-quarters of all vehicles sold in the country. Last month, a decline in sales in the segment caused overall sector growth to fall to 2%, despite robust performances from cars (20%), commercial vehicles (20%) and tractors (57%).

According to the Federation of Automobile Dealers Associations (FADA), two-wheeler sales fell 3%, largely due to strong buying in the preceding festive month of October. Delayed harvest payments and an uneven supply of preferred models also impacted November sales.

Notably, dealers continue to witness strong customer numbers, largely linked to improved sentiment following the recent Goods and Services Tax (GST) cuts and healthy demand in the wedding season.

According to data collected by FADA from the government’s Vahan portal, as many as 3.3 million vehicles were registered last month, up from 3.23 million units in November 2024.”Traditionally, car sales decline in the month after the festival cycle; however, this year, most of the festive registrations were completed in October 2025 itself, unlike November 2024, when Deepawali and Dhanteras collapsed in late October 2024, and vehicle registrations took place in November 2024, increasing volumes significantly,” said CS Vigneshwar, president of FADA.

“Even with this shift, the sector ended November 2025 with year-on-year growth of 2.14%, reaffirming customer confidence and the structural strength of the Indian automotive retail market.”

The VAT cuts, coupled with retail offers from dealers and car manufacturers, continued to attract customers to showrooms, allowing continued footfall beyond the festive period. Price cuts across all categories, which led to strong purchases in October, continued to support conversions in November, according to FADA. Passenger car registrations grew 20% in November, helped by GST benefits, wedding season demand, better supply of highly anticipated models and continued demand for compact SUVs. As a result, inventory fell to 44-46 days from 53-55 days in October, Vigneshwar said.

In the commercial vehicle segment, infrastructure activities, freight transport, tourist mobility, government procurement cycles and VAT reforms drove volumes up, although fleet utilization remained uneven in certain markets.

Vigneshwar said near-term auto sales will continue to be supported by improving rural sentiment and favorable macro indicators. There has been a strong start to the rabi season, with sowing area of ​​39.3 million hectares, ahead of last year. At the same time, the weather bureau’s forecast of a colder-than-normal winter in the Northern and Central Plains is expected to boost mobility needs and logistics activity.