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Car Dealers Stock Up Double FADA Limits Ahead of Festive Season
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CNBC TV18•06-10-2026, 10:05
Car Dealers Stock Up Double FADA Limits Ahead of Festive Season
- •Passenger vehicle dealers are holding 43 to 45 days of inventory, more than double FADA's recommended 21 days, ahead of the main festive season.
- •Indian auto retail hit a record September with 25.37 lakh vehicles sold, marking a 31.82% year-on-year rise driven largely by a weak base effect from the previous year.
- •EV retail across categories reached a monthly record of about 3.34 lakh units, pushing EV penetration to roughly 13% of total sales.
- •Maruti Suzuki led passenger vehicles with a 39.59% market share, while Mahindra & Mahindra narrowly edged out Tata Motors for second place.
Key Questions Answered
Passenger vehicle dealers are holding around 43 to 45 days of inventory, which is more than double the 21-day recommendation set by the Federation of Automobile Dealers Associations (FADA).
Indian buyers took home a record 25.37 lakh vehicles in September 2026, marking a 31.82% year-on-year increase and the highest September sales figure on record.
FADA and dealers have warned that further price increases driven by rising input costs pose the foremost risk to consumer affordability and could erode market momentum next quarter.
