India’s automobile market saw a strong comeback in October 2025, powered by festive demand, rural recovery, and the rollout of GST 2.0, which lowered tax rates and boosted consumer confidence. Both commercial
vehicles and two-wheelers recorded solid retail growth during the month, according to a new report by ICRA.
The commercial vehicle (CV) segment, in particular, showed strong momentum. Retail sales jumped 17.7 per cent year-on-year (YoY) and an impressive 49.5 per cent compared to September. Light Commercial Vehicles (LCVs) were the clear winners, growing 29.8 per cent YoY and 64.3 per cent month-on-month. “This was driven by logistics demand from rural areas, GST reforms, and strong festive buying,” ICRA noted.
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Medium and Heavy Commercial Vehicles (M&HCVs), however, saw a marginal 1.4 per cent drop in YoY sales as many fleet operators delayed purchases ahead of the new BS-VII emission norms. Still, a 26 per cent sequential rise showed that some pent-up demand was beginning to return after the GST 2.0 announcement.
The wholesale side of the market reflected a similar trend. Domestic CV wholesales grew 11.4 per cent YoY in October and 7.8 per cent month-on-month, while cumulative wholesales for the first seven months of FY2026 were up 4.5 per cent. This growth was attributed to higher freight movement and a renewed pace in infrastructure development.
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Looking ahead, ICRA expects the CV industry to post a modest 3–5 per cent growth in FY2026, supported by continued infrastructure activity and a stable economy. Meanwhile, two-wheelers had a blockbuster October. Retail sales surged 51.8 per cent YoY, the highest-ever recorded in a single month. Electric two-wheelers maintained their growth trajectory, clocking 1,44,365 units in retail sales, up 4 per cent YoY. Their overall market share stayed steady between 6 and 7 per cent.
(With inputs from IANS)
