TL;DR
Indian auto retail sales hit a record 4.02 million units in October 2025, driven by the festive season, GST reforms, and strong rural demand.
India's automotive retail sales reached an unprecedented high in October 2025, with a record 4.02 million units sold, according to the Federation of Automobile Dealers Associations (FADA). This remarkable 40.5 percent year-on-year increase from October 2024 was fueled by the 42-day festive season and recent reforms in Goods and Services Tax (GST) rates.
The festive period saw a car sold every two seconds and almost three two-wheelers sold every second, as dealers worked extended hours to meet overwhelming demand. Passenger vehicle sales surpassed the five-lakh mark, reaching 5.57 lakh units, an 11 percent increase, while two-wheelers recorded their highest-ever monthly sales at 3.15 million units, up 52 percent. Commercial vehicles also saw an 18 percent growth, driven by infrastructure spending and freight activity.
Rural markets played a crucial role, with retail sales growth for passenger vehicles tripling and two-wheelers doubling compared to urban areas, indicating a strong resurgence in purchasing power due to favorable monsoons and higher farm incomes. This unprecedented performance has instilled a palpable sense of optimism across the entire auto retail sector.
