Auto Sales Surge: September Growth Amid Festive Demand and GST 2.0 Boost

Passenger Vehicle sales stood at 3,72,458 units in September 2025, a 4.4 per cent increase over 3,56,752 units sold in the same month last year.

Two-Wheelers recorded sales of 21,60,889 units, up 6.7 per from 20,25,993 units in September 2024, driven by higher rural demand and improved affordability.

Three-Wheeler sales also grew 5.5 per cent, reaching 84,077 units compared to 79,683 units last year.

The industry's performance indicates a positive sentiment ahead of the peak festive season and reflects the initial benefits of recent tax reforms aimed at boosting consumption.

SIAM said that this year, the festive season commenced earlier than last year, beginning from September 22 with Navratri, which helped stimulate retail activity during the latter part of Q2 itself.

It added that the extended festive and wedding season is expected to sustain he growth momentum through Q3, reinforcing positive consumer sentiment across all vehicle categories.

"The Kharif harvest is expected to be broadly healthy, supported by an above-normal monsoon. However, flooding parts North, West and Eastern regions impacted certain crops and logistics temporarily. Despite these disruptions, overall agricultural output and rural sentiment remain stable, which is likely to support rural consumption and mobility demand in H2," SIAM added.

It further added that the the rollout of GST 2.0 reforms, coupled with earlier RBI rate rationalizationmeasures and Income Tax relief to common Taxpayers, are expected to sustain buying interest across all vehicle segments through the festive and post-festive months.

"While the industry remains watchful of geopolitical developments, the overall outlook for rest of the current Financial Year remains encouraging, with the sector expected to close the fiscal year on a positive growth trajectory," the SIAM added in its note.

- ANI