TL;DR
India's auto retail sales hit record highs in October, driven by strong festive demand and favorable GST 2.0 policy changes, especially for two-wheelers and passenger vehicles.
October 2025 witnessed a historic surge in India's automobile retail sales, with overall growth reaching a remarkable 40.5% year-on-year. Both passenger vehicles (PVs) and two-wheelers (2Ws) recorded lifetime high sales, signaling a robust rebound in consumer confidence and strong economic indicators. This unprecedented growth followed a quiet September due to the GST 2.0 transition, as pent-up demand combined with festive sentiment and tax-cut excitement propelled sales to new records.
Two-wheeler sales soared by 52% year-on-year, bolstered by strong rural demand, reduced GST rates, and the festive rush. Passenger vehicle sales also saw an impressive 11% year-on-year increase, surpassing the five-lakh unit mark to reach 5.57 lakh units, the highest ever in India's retail history. The introduction of GST 2.0, which lowered GST rates for small cars, played a crucial role in making vehicle ownership more accessible, particularly for first-time buyers.
