TL;DR
India's automotive retail sales hit record highs in October 2025, with a 40.5% year-on-year growth across all segments, largely due to festive demand and GST 2.0 reforms.
The Indian automotive retail sector experienced unprecedented growth in October 2025, recording a phenomenal 40.5% year-on-year surge in sales, as reported by the Federation of Automobile Dealers Associations (FADA). This historic performance saw both passenger vehicles and two-wheelers achieve their highest-ever retail figures. The remarkable rebound is primarily attributed to a strong festive season demand, the transformative impact of GST 2.0 reforms which enhanced vehicle affordability, and a significant resurgence in rural consumer confidence.
Passenger vehicle sales decisively breached the five-lakh unit mark, closing at an all-time high of 5.57 lakh units, while two-wheeler sales soared by 52% year-on-year, propelled by robust rural demand and festive purchasing. The 42-day festive period, spanning from Dussehra to Diwali, also registered its highest-ever performance with an overall retail surge of 21%. FADA anticipates this positive momentum to continue into the upcoming marriage season and post-harvest months, further supported by improving rural liquidity and continued infrastructure investments across the country.
