A Festive Surge Fueled by Tax Reforms
India’s automobile retail industry entered a landmark phase in September 2025, as the GST 2.0 reform and the onset of Navratri festivities combined to spark an unprecedented buying wave. According to the Federation of Automobile Dealers Associations (FADA), the twin triggers reignited consumer sentiment and helped the auto sector achieve historic sales milestones, reversing months of cautious demand.
FADA’s data reveals that overall vehicle retail rose 5.22% year-on-year to 18.27 lakh units, compared to 17.37 lakh units in September 2024. The month began on a quiet note as consumers waited for the GST cuts to take effect, but after September 22, sales surged sharply—coinciding with both the tax reform rollout and Navratri celebrations.
September 2025: Two Halves, One Turning Point
The first three weeks of September saw hesitant buyers and subdued dealership activity. However, the final stretch flipped the script. Lower GST rates, combined with aggressive festive discounts, unleashed pent-up demand across all major segments.
Here’s the category-wise snapshot:
· Two-Wheelers: 12.88 lakh units (+6.5% YoY) — Affordability improved as GST cuts filtered through to entry-level models.
· Passenger Vehicles: 2.99 lakh units (+5.8% YoY) — Festive bookings and demand for upgraded models pushed inventory levels to 60 days.
· Commercial Vehicles: 72,124 units (+2.6% YoY) — Financing support and infrastructure optimism kept this segment stable.
· Tractors: 64,785 units (+3.6% YoY) — Resilient rural markets offset uneven monsoons.
· Three-Wheelers: 98,866 units (–7.2% YoY) — Urban demand remained inconsistent.
· Construction Equipment: 4,458 units (–19% YoY) — Heavy rainfall disrupted project activity.
The late-September sales rebound ensured that the auto retail industry ended the month on a strong positive note.
Navratri 2025: The ‘Bachat Utsav’ Effect
If September marked revival, Navratri 2025 sealed the celebration. The 10-day festive period from September 22 to October 2 saw vehicle sales soar 34% YoY to 11.57 lakh units, marking the highest-ever festive performance in India’s automotive history.
Segment-wise highlights:
· Two-Wheelers: 8.35 lakh units (+36%) — Entry-level and commuter bikes saw a resurgence.
· Passenger Vehicles: 2.17 lakh units (+34.8%) — Mid- and high-end models dominated sales.
· Commercial Vehicles: 33,856 units (+14.8%) — Fleet expansion and easy credit drove growth.
· Tractors: 21,604 units (+18.7%) — Rural buying sentiment remained buoyant.
· Three-Wheelers: 46,204 units (+24.5%) — Mobility operators expanded fleets.
“This Navratri wasn’t just a festival—it was an inflection point,” said FADA Vice President Sai Giridhar, calling GST 2.0 a “transformative catalyst” for the sector.
Winners and Market Trends
Hero MotoCorp and Honda shared leadership in the two-wheeler space, each commanding around 25% market share, while EV penetration in the segment rose to 8.1%.
In passenger vehicles, Maruti Suzuki led with 41.2%, followed by Tata Motors (13.8%), Mahindra (12.6%), and Hyundai (12%). EV sales doubled to 5.1% of total PVs sold, indicating growing consumer acceptance.
The commercial vehicle market was dominated by Tata Motors (33%) and Mahindra (29.3%), while Mahindra also topped tractor sales (23.9%).
The Road Ahead: A Golden Festive Season Beckons
Looking ahead, FADA forecasts October—featuring Dhanteras and Deepawali—to continue this momentum. Stable interest rates, an encouraging monsoon, and robust rural incomes are expected to sustain the rally.
Dealer sentiment surveys echo optimism:
· 71% of dealers rate business sentiment as good.
· 62.7% expect sales growth in October.
· 66.9% anticipate expansion through the next quarter.
A Turning Point for India’s Auto Market
September and Navratri 2025 mark a watershed in India’s automobile retail history. The combination of GST 2.0’s affordability impact and the festive spending wave has reenergized the market across categories.
If supply chains remain stable and financing support continues, 2025 could go down as the most successful festive season ever for India’s auto sector—ushering in not just sales records, but a new era of consumer confidence and market resilience.
(With agency inputs)
