Key Points

Passenger vehicle sales grew 34.8 per cent, while two-wheeler sales were up 36 per cent riding on GST reforms. The overall sales growth for the September was at 5.22 per cent at 18,27,337 units compared to 17,36,760 in September of the previous year, owing to slowdown in sales until September 21.

The report mentioned that the momentum built in the closing days of September will carry forward into Deepawali, marking a promising end to the 42-days festive period. The report mentioned the auto dealerships are witnessing surging enquiries and bookings across two-wheelers, passenger vehicles, and commercial fleets.

If the logistics and transportation ecosystems work seamlessly, this could be the best festive retail season India has ever seen, with supply chains matching the country's celebratory demand, according to the report.

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.

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.

Across segments, a similar pattern played out, where retail remained subdued until September 21, followed by a surge once GST 2.0 reforms came into effect.

“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 Prime Minister Narendra Modi," FADA Vice President Sai Giridhar said.

As dealers used this period to replenish inventory, stock levels for PV segment rose to around 60 days, the report noted.

Meanwhile during September, three-wheeler and commercial equipment vehicles saw drop in sales at 7.20 per cent and 19 per cent, respectively.

- IANS