The combination of festive season demand and GST rate cuts fuelled a record-breaking October 2025 for India’s auto industry. Several automakers reported their highest-ever monthly sales, reflecting a strong resurgence in consumer demand.
Market leaders like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra posted robust growth, while brands such as Nissan, Skoda, and Toyota, historically trailing in volumes, showed renewed momentum—signalling a broad-based recovery across the sector.
Maruti Suzuki continued to lead the pack, achieving its highest-ever monthly domestic sales of 1,76,318 units, a 10% year-on-year increase, reinforcing its dominance in the passenger vehicle market. Exports, however, declined 5.6% due to logistics challenges.
Partho Banerjee, Senior Executive Officer for Marketing and Sales at Maruti Suzuki, highlighted that retail sales for the industry are expected to rise 10–11% in October, driven by strong consumer sentiment during Dussehra, Dhanteras, and Diwali.
Compact cars lead the way as Indian auto market sees strong October demand
Sub-4-meter cars drive sales
Popular compact models like Maruti Suzuki Baleno, Swift, and Tata Nexon continued to see strong demand in India, highlighting the enduring popularity of small and entry-level vehicles. According to R.C. Bhargava, Non-Executive Chairman of Maruti Suzuki, the recent GST cut presents an opportunity for automakers to rethink their product mix and expand their range of models. This shift could help compact cars regain market share from SUVs, which have dominated in recent years.
Tata Nexon demonstrated exceptional growth, with the SUV reporting a 50% YoY increase, fuelled by its diverse powertrain options, according to a Tata Motors spokesperson.
Leaderboard Rejigged
Mahindra & Mahindra climbed to the second spot with a 31% YoY surge, selling 71,624 units domestically. The automaker also launched updated editions of Thar, Bolero, and Bolero Neo, which contributed to strong demand.
Tata Motors Passenger Vehicles moved up from fourth to third position, posting a 27% YoY increase to 61,134 units. Boosted by models like the Harrier and Safari, which together accounted for approximately 7,000 units, Tata continues to strengthen its position in the market.
Hyundai Slips, Toyota surges as October auto sales reflect festive momentum
Hyundai Motor India saw a surprising shift in October, dropping from second to fourth place in sales compared to last year. The South Korean automaker sold 53,792 units, a 3% YoY decline from 55,568 units. Despite this, the continued popularity of Creta and Venue SUVs, which together sold over 30,000 units, helped soften the impact.
Tarun Garg, Whole-time Director and COO at Hyundai Motor India, stated: “We aim to build on this momentum with the launch of the all-new Hyundai Venue, now open for bookings. With its refreshed design, advanced features, and segment-leading safety, we are confident it will set new benchmarks in the compact SUV segment.”
Toyota Kirloskar Motor India regained momentum with a 43% YoY surge, selling 40,257 units. This growth was driven by festive special editions of popular models, including the Urban Cruiser Hyryder Aero Edition and Fortuner Leader Edition. The company plans to launch 15 new and updated models to further strengthen its market presence.
Varinder Wadhwa, Vice President of Sales-Service-Used Car Business at Toyota Kirloskar Motor, noted: “The government’s GST reforms and the positive festive sentiment have boosted customer confidence, leading to a sharp rise in enquiries and bookings across our dealerships.”
Other Players:
- JSW MG Motor India: 6,397 units
- Honda Cars India: 6,394 units
Looking Ahead:
Industry experts expect a moderation in growth after the record October performance. Partho Banerjee of Maruti Suzuki said, “Some pent-up demand has played out, and 20% growth cannot be sustained — it will taper off. However, a new wave of buyers is emerging post-GST cut.”
To keep pace with the festive rush, automakers like Maruti Suzuki have extended working hours and production schedules, operating on Sundays for four consecutive months to ensure timely deliveries.
2024 vs 2025 Passenger Vehicle OEM Rankings in India
| OEM (2024) | 2024 Sales | Rank (2025) | OEM (2025) | 2025 Sales |
| Maruti Suzuki | 1,59,591 | 1 | Maruti Suzuki | 1,76,318 |
| Hyundai | 55,568 | 2 | Mahindra | 71,624 |
| Mahindra | 54,504 | 3 | Tata Motors | 61,134 |
| Tata Motors | 48,131 | 4 | Hyundai | 53,792 |
| Toyota | 28,138 | 5 | Toyota | 40,257 |
Highlights:
- Maruti Suzuki retains the top spot with strong growth from 1,59,591 units in 2024 to 1,76,318 units in 2025.
- Mahindra moves up to 2nd place in 2025, surpassing Hyundai.
- Tata Motors climbs to 3rd place, reflecting a solid performance in the passenger vehicle segment.
- Toyota shows steady growth, maintaining its 5th position.
