India’s automobile retail sector witnessed a major revival in September 2025, as per data released by the Federation of Automobile Dealers Associations (FADA). The implementation of GST 2.0 boosts auto retail sentiment nationwide. Especially, driving record-breaking festive growth during Navratri and setting the stage for a robust October–December quarter.
GST 2.0 Boosts Automotive Retail Sales Across Segments
Two-Wheeler Sales Surge on Affordability
Two-wheeler (2W) retail grew 6.5% year-on-year in September, with over 12.87 lakh units sold. The segment surged 36% during Navratri, driven by GST rate cuts, festive discounts, and pent-up demand. Hero MotoCorp reclaimed leadership with a 25.1% market share, followed closely by Honda Motorcycle and Scooter India (25.05%) and TVS Motor Company (19.11%).
Electric two-wheelers also gained traction, accounting for 8.09% of total sales. Brands like Ather Energy, Ola Electric, and River Mobility contributed to the electric momentum. The strong rural sentiment and rising affordability indicate sustained growth through October to December, with festive demand carrying into Deepawali.
Cars and Passenger Vehicles Witness Strong Festive Uptick
Passenger vehicle (PV) sales climbed 5.8% YoY in September 2025, reaching 2.99 lakh units, with inventory levels around 60 days, a sign of festive preparedness. During Navratri, PV sales rose 34.8%, marking the highest-ever festive growth.
Maruti Suzuki led the PV segment with 41.17% market share, followed by Tata Motors (13.75%), Mahindra (12.58%), and Hyundai (11.96%). The GST 2.0 reform encouraged both new buyers and upgraders, boosting sales of higher variants and SUVs. Electric and hybrid cars collectively held over 12% market share, showing India’s continued shift toward greener mobility.
Commercial and Rural Segments Stay Resilient
Commercial vehicles (CV) posted a 2.6% YoY growth in September, while the Navratri period saw 14.8% growth, reflecting improved financing conditions and infrastructure optimism. Tata Motors remained the leader with 33.04%, followed by Mahindra & Mahindra at 29.29%.
Tractors grew 3.6% YoY in September and 18.7% during Navratri, supported by a strong kharif harvest and rural demand. Mahindra Tractors topped the chart with a 23.95% share, followed by Swaraj (17.84%) and TAFE (12.26%).
However, the construction equipment (CE) segment declined 19% YoY due to heavy monsoon rains that slowed construction activities.
Outlook for October to December 2025
FADA projects high optimism for the October–December quarter, calling it India’s “golden festive phase.” Stable RBI rates, above-normal monsoon, and rural recovery are expected to further accelerate auto retail. With GST 2.0 improving affordability and OEMs launching aggressive festive schemes, India could witness its best-ever retail season during Dhanteras and Deepawali.
Conclusion on GST 2.0 Boosts Auto Retail
The GST 2.0 boosts auto retail revolutionized India’s automobile sector in September 2025, igniting record Navratri sales across two-wheelers, cars, and rural vehicles. With strong demand expected to extend through the year-end, FADA anticipates a festive quarter that could redefine India’s auto retail history.
