TL;DR
India's auto retail sales experienced a record-breaking October 2025, driven by festive demand, GST cuts, and strong rural market growth, with overall sales up 40.5% year-on-year.
October 2025 marked an unprecedented period for India's automotive retail sector, with overall sales surging by an impressive 40.5% year-on-year. This record-breaking performance is attributed to a combination of pent-up demand, significant GST rate reductions implemented in September, and the auspicious festive season. Both passenger vehicles and two-wheelers reached all-time high sales figures, reflecting a robust resurgence in consumer confidence and underlying economic strength across the country.
A notable shift in demand dynamics was observed, with rural areas emerging as a primary growth engine. Rural passenger vehicle sales grew more than three times faster than urban sales, while two-wheeler growth in rural regions was nearly double that of urban centers. The reduction in GST rates, particularly for entry-level two-wheelers (under 350cc) and small cars (under 4 meters), significantly enhanced affordability, prompting a surge in first-time buyers. The industry anticipates this momentum to continue through the end of the year, supported by the ongoing wedding season, improved harvest cash flows, and forthcoming new model introductions.
