TL;DR
India's auto market saw robust, record-breaking sales during the festive season of September-October 2025, driven by improved sentiment and GST reforms.
The Indian automobile retail sector has experienced a significant surge in sales during the ongoing festive season, with current trends indicating a potential record high. This positive momentum, observed in September and October 2025, is expected to surpass last year's figures, which saw over 60 lakh vehicle registrations. The robust growth is attributed to factors such as improving rural sentiment, easing financing conditions, and the positive impact of the new Goods and Services Tax (GST) regime.
According to the Federation of Automobile Dealers Associations (FADA), the festive season has witnessed a growth rate of 20 percent, with expectations for even better performance as Diwali approaches. Notably, Navratri period retail sales alone recorded an impressive 34 percent year-on-year growth. The new GST regime, implemented from September 22, has played a crucial role by making automobiles across various segments more affordable, thereby stimulating consumer demand.
While passenger vehicles showed sustained momentum, particularly in the SUV and crossover segments, two-wheelers continue to dominate the market. The two-wheeler segment registered an increase of 3.07 percent, driven by steady traction for entry-level commuter bikes and scooters. Improved liquidity in the rural economy, resulting from above-normal monsoons and a healthy Kharif season, has also significantly contributed to the overall sales performance, particularly for two-wheelers.
