October 2025 has emerged as a historic month for India’s automobile retail industry, setting unprecedented records across vehicle categories. According to the Federation of Automobile Dealers Associations (FADA), total vehicle registrations surged 40.5% year-on-year to 40.24 lakh units, marking the highest-ever monthly volume in India. The 42-day festive period between Dussehra and Diwali further boosted sales, driving remarkable growth across segments.
Segment-wise performance:
- Passenger vehicles: up 11.4% to a record 5.57 lakh units
- Two-wheelers: soared 51.8% year-on-year to 31.5 lakh units
- Commercial vehicles: +17.7%
- Tractors: +14.2%
- Three-wheelers: +5.4%
- Construction equipment: only segment to decline, down 30.5%
C S Vigneshwar, President of FADA, commented, “October 2025 will be remembered as a landmark month for India’s auto retail. A combination of policy reforms, festive demand, and rural resurgence delivered record-breaking results. Both passenger vehicles and two-wheelers achieved lifetime highs, reflecting renewed consumer confidence and strong economic momentum.”
October 2025: A landmark month for India’s auto industry
After a relatively quiet September during the early GST 2.0 transition, October saw a sharp rebound in India’s vehicle retail market. FADA described the month as a “hurdle race,” where pent-up demand, festive sentiment, and tax incentives passed the baton to each other, driving the industry to its highest-ever monthly registrations.
Passenger vehicle inventory levels improved, easing by 5 to 7 days to 53–55 days, indicating better supply alignment and sustained retail demand. Dealers across India reported record enquiries, higher showroom footfalls, and improved conversion rates compared to previous festive seasons, highlighting renewed consumer confidence and a vibrant market environment.
Maruti, Tata and Mahindra lead Passenger Vehicle sales in record-breaking October
In October 2025, Maruti Suzuki maintained its dominance in the passenger vehicle market with a 42.98% market share, followed by Tata Motors (13.52%) and Mahindra & Mahindra (12.19%). Together, these three brands accounted for nearly seven out of ten cars sold during the month.
In the two-wheeler segment, Hero MotoCorp led with 31.58%, followed by Honda Motorcycle & Scooter India (26.10%) and TVS Motor (17.72%). Among commercial vehicles, Mahindra topped the charts with 34.5%, ahead of Tata Motors (32.3%) and Ashok Leyland (15.3%).
GST 2.0 sparks affordability wave
The rollout of GST 2.0 emerged as a key driver of India’s record-breaking auto retail performance. Reduced GST rates for entry-level two-wheelers and small cars significantly improved affordability, encouraging first-time buyers to make purchases ahead of Diwali.
According to FADA, “Lowering small-car GST rates made vehicle ownership more attainable, especially for cost-sensitive first-time buyers. Timed perfectly with the festive season, this affordability boost converted positive sentiment into action.”
The new tax regime, guided by the principle of “Simpler Tax, Stronger Growth,” is seen as a long-term enabler of middle-class consumption, creating the ideal environment for volume acceleration, particularly in entry-level, small SUV, and CNG vehicle segments.
Rural India drives auto sales growth in October 2025
While GST 2.0 set the stage, it was rural India that truly fuelled October’s record-breaking performance. FADA described the month as the “rise of Bharat,” signalling a structural shift in India’s automotive demand. Strong monsoons, improved farm incomes, and government-led infrastructure spending boosted purchasing power outside metros and tier-one cities.
“Rural India became the true growth engine,” FADA noted. Rural passenger vehicle sales grew over three times faster than urban markets, while rural two-wheeler growth nearly doubled urban rates, highlighting a permanent transformation in the country’s demand landscape.
Dealers in tier-two and tier-three towns reported unprecedented enthusiasm for commuter bikes, scooters, and compact cars. Rural markets not only outpaced urban growth but also showed increasing demand for CNG and ethanol-powered vehicles, reflecting rising awareness of affordability and fuel efficiency.
Festive season 2025 redefines auto sales momentum in India
The 42-day festive period from 22 September to 2 November 2025 propelled India’s auto retail market to new heights. Total vehicle registrations surged 21.1% year-on-year, reaching an all-time high of 52.38 lakh units. Segment-wise growth included two-wheelers (+21.8%), passenger vehicles (+23.4%), commercial vehicles (+15%), and tractors (+14.2%).
C S Vigneshwar, FADA President, stated: “The 42-day festive period of 2025 stands as a defining milestone for India’s auto retail, delivering record-breaking sales and growth across categories. This festive season was exceptional — with Dussehra and Diwali in the same month, perfectly coinciding with the rollout of GST 2.0, fuelling demand across Bharat’s heartlands.”
Dealers across the country reported unprecedented enquiries, stronger liquidity, and buyers advancing purchases to take advantage of lower GST rates and attractive festive offers, making this the best festive season in recent memory.
Measured optimism for India’s auto market ahead
Looking forward, FADA’s dealer survey indicates strong near-term optimism for India’s automotive sector. Approximately 64% of dealers expect growth in November, while 70% anticipate expansion over the next three months. Healthy liquidity, supported by robust financing and improving margins, continues to underpin confidence.
“GST 2.0 continues to anchor affordability under the vision of Simpler Tax, Stronger Growth,” FADA noted. “Coupled with the marriage season, harvest cashflows, and new model launches, momentum is expected to continue through year-end.”
The federation highlighted that India’s auto retail is entering 2026 on solid footing, driven by policy reforms, strong rural incomes, and renewed consumer appetite for mobility. October 2025 will be remembered as the month when policy, prosperity, and the people of Bharat came together to deliver the strongest festive season in Indian automotive history.
