The automobile industry saw record sales growth during the Navaratri period from September 22 to September 30, data from Federation of Automobile Dealers Association revealed no Tuesday.
According to the data, festive sales grew 34 per cent year-on-year. Passenger vehicle sales grew 34.8 per cent, while two wheeler sales were up 36 per cent riding on GST reforms.
However, sales until September 21 were slow and the overall growth for the month was at 5.22 per cent year at 18,27,337 units compared to 17,36,760 in September last year.
Across segments, a similar pattern played out, where retails remained subdued till September 21, followed by a surge once GST 2.0 came into effect.
The reduction in GST rates, coupled with festive demand, led to renewed enquiries and bookings, although limited billing days restricted the full potential of the rebound, FADA said in its report.
Dealers used this period to replenish inventory. Stock levels for PV segment hence rose to around 60 days, reflecting festive preparedness ahead of October’s peak season. The momentum built in the closing days of September will carry forward into Deepawali, marking a promising end to the 42-days festive period
Two-wheeler category sales increased by 6.1 per cent to 12,87,735 in September, compared to 12,08,996 for the same month previous year. Personal vehicle sales grew by 5.81 per cent to 2,99,369 as against 2,82,945 in September 2024.
Meanwhile, three-wheeler and commercial equipment vehicles saw decrease in sales at -7.20 per cent and -19 per cent, respectively.
“Navratri 2025 will go down as one of the most memorable chapters in India’s automobile retail journey — a true ‘Bachat Utsav’ unleashed by the visionary GST 2.0 reform announced by Hon’ble Prime Minister Shri Narendra Modi ji. For the first time ever, dealerships across the nation witnessed record-breaking footfalls and deliveries, with overall retails surging by 34% YoY — a historic high during any festive season," FADA Vice President Sai Giridhar said.
Future outlook
Indian automobile industry could witness the best 42-day long festive season in history. With GST 2.0 rate cuts transforming affordability and confidence across every income segment, the nation’s auto retail sector has entered an unprecedented growth phase, FADA said in the report.
Further, Dhanteras and Diwali are expected to deliver all-time high sales, with auto dealerships witnessing surging enquiries and bookings across two-wheelers, passenger vehicles, and commercial fleets.
Affordable prices post-GST 2.0, coupled with aggressive OEM offers and easy finance availability, have drawn a new wave of first-time buyers into showrooms, even as upgraders opt for premium variants. If the logistics and transport ecosystem performs seamlessly, this could well be the best festive retail season India has ever experienced, with supply chains matching the nation’s celebratory demand.
According to the data, festive sales grew 34 per cent year-on-year. Passenger vehicle sales grew 34.8 per cent, while two wheeler sales were up 36 per cent riding on GST reforms.
However, sales until September 21 were slow and the overall growth for the month was at 5.22 per cent year at 18,27,337 units compared to 17,36,760 in September last year.
Across segments, a similar pattern played out, where retails remained subdued till September 21, followed by a surge once GST 2.0 came into effect.
The reduction in GST rates, coupled with festive demand, led to renewed enquiries and bookings, although limited billing days restricted the full potential of the rebound, FADA said in its report.
Dealers used this period to replenish inventory. Stock levels for PV segment hence rose to around 60 days, reflecting festive preparedness ahead of October’s peak season. The momentum built in the closing days of September will carry forward into Deepawali, marking a promising end to the 42-days festive period
Two-wheeler category sales increased by 6.1 per cent to 12,87,735 in September, compared to 12,08,996 for the same month previous year. Personal vehicle sales grew by 5.81 per cent to 2,99,369 as against 2,82,945 in September 2024.
Meanwhile, three-wheeler and commercial equipment vehicles saw decrease in sales at -7.20 per cent and -19 per cent, respectively.
“Navratri 2025 will go down as one of the most memorable chapters in India’s automobile retail journey — a true ‘Bachat Utsav’ unleashed by the visionary GST 2.0 reform announced by Hon’ble Prime Minister Shri Narendra Modi ji. For the first time ever, dealerships across the nation witnessed record-breaking footfalls and deliveries, with overall retails surging by 34% YoY — a historic high during any festive season," FADA Vice President Sai Giridhar said.
Future outlook
Indian automobile industry could witness the best 42-day long festive season in history. With GST 2.0 rate cuts transforming affordability and confidence across every income segment, the nation’s auto retail sector has entered an unprecedented growth phase, FADA said in the report.
Further, Dhanteras and Diwali are expected to deliver all-time high sales, with auto dealerships witnessing surging enquiries and bookings across two-wheelers, passenger vehicles, and commercial fleets.
Affordable prices post-GST 2.0, coupled with aggressive OEM offers and easy finance availability, have drawn a new wave of first-time buyers into showrooms, even as upgraders opt for premium variants. If the logistics and transport ecosystem performs seamlessly, this could well be the best festive retail season India has ever experienced, with supply chains matching the nation’s celebratory demand.
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