India’s auto retail industry has hit a new benchmark this festive season, with total vehicle sales soaring past 52 lakh units during the 42-day period, the highest ever recorded, according to data released by the Federation of Automobile Dealers Associations (FADA). The surge marks a 21% year-on-year jump, powered by robust demand for passenger vehicles and two-wheelers, both of which benefited from lower prices following the GST rejig.
FADA President C S Vigneshwar called it a “defining milestone for India’s auto retail,” noting that every category witnessed record sales and growth during the season. Overall sales climbed from 43,25,632 units in the 2024 festive period to 52,38,401 units this year.
Passenger vehicle (PV) registrations grew by
23%, reaching 7,66,918 units compared to 6,21,539 units last year. “The GST 2.0 vision of empowering affordability and boosting middle-class consumption found real reflection on dealership floors,” Vigneshwar said. “Compact and sub-4-metre cars saw a strong resurgence as reduced tax rates expanded the buying base. Dealers also noted that retail momentum exceeded supply in several models.”
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The two-wheeler segment also had a remarkable run, registering 22% growth with 40,52,503 units sold versus 33,27,198 units in 2024. Dealers attributed the momentum to stronger rural demand, improved liquidity, and the affordability boost driven by GST rationalisation. Vigneshwar added that the 2025 festive run was “the best in recent memory,” with commuter bikes and scooters witnessing high traction, along with a noticeable uptick in EV interest.
Three-wheeler and commercial vehicle categories followed suit, posting 9% and 15% growth, respectively, during the 42-day window. Vigneshwar credited the success to the wider economic impact of the tax reforms, saying, “This season’s success has reaffirmed that the GST 2.0 reform is not just a tax simplification, but a catalyst for consumer-led growth and national prosperity. It has lowered ownership costs, energised Bharat’s economy, and rekindled aspiration in every segment of society.”
October 2025 alone turned out to be a blockbuster month, with overall retail sales touching 40,23,923 units, up 41% year-on-year, as both passenger vehicles and two-wheelers achieved their highest-ever monthly tallies. Passenger vehicle sales grew 11% to 5,57,373 units from 5,00,578 units in October 2024, while two-wheelers spiked 52% to 31,49,846 units from 20,75,578 units a year earlier.
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“After an almost quiet September for the first 21 days due to the GST 2.0 transition, October witnessed a swift rebound, almost like a hurdle race where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels,” Vigneshwar remarked. Meanwhile, three-wheeler sales climbed 5% year-on-year in October to 1,29,517 units, and commercial vehicle registrations were up 18%.
(With inputs from PTI)
