Key Figures & Highlights Overall Retail Vehicle Sales

Here’s a detailed summary of the Indian auto retail market for September 2025, clearly showing how the twin engines of the Federation of Automobile Dealers Associations (FADA) data and broader market-reports reflect the impact of the festive season and the GST 2.0 reforms.


📊 Key Figures & Highlights
Overall Retail Vehicle Sales

According to FADA, vehicle retail sales in September 2025 rose by ≈ 5.22% year-on-year (YoY) to about 18.27 lakh units, up from ~17.37 lakh in September 2024. 
India Today
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ETAuto.com
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The month can be seen in two parts: the first ~21 days were muted, as many buyers waited for the GST rate changes; after ~22 September, when the reforms took effect and the Navratri period began, the market picked up sharply. 
The Economic Times
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Category-wise Breakdown

Two-wheelers (2W): ~12.88 lakh units, up ~6.5% YoY. 
India Today
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ETAuto.com
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Passenger Vehicles (PVs): ~2.99 lakh units, up ~5.8% YoY. 
India Today
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Commercial Vehicles (CVs): ~72,124 units, up ~2.6% YoY. 
India Today

Three-Wheelers (3Ws): ~98,866 units, down ~7.2% YoY. 
India Today

Festive Surge (Navratri Period)

For the 10-day festive stretch (≈ 22 Sept to early Oct) labelled by FADA as a “Bachat Utsav”, vehicle sales surged ~34% YoY to ~11.57 lakh units. 
India Today
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Within that: two-wheelers ~+36%; passenger vehicles ~+34.8% in that period. 
India Today

✅ What drove this uplift?
GST 2.0 Reforms

The Government reduced GST rates effective ~22 September for several vehicle categories: e.g., small cars (under 4 m length) and two-wheelers (≤ 350 cc) moved from ~28% to 18%. Larger vehicles >4 m got a special rate of ~40% (instead of 43-50% including cess). 
The Economic Times

This improved affordability and triggered buyer urgency (“wait until the rate change” behaviour). 
The Economic Times

Many OEMs passed on some of the tax benefit via price reductions/promotions. 
The Times of India

Festive Demand & Sentiment

The onset of Navratri & upcoming Diwali created a favourable context: buyers tended to align purchases with auspicious periods and festival-offers. The combination of festival timing + tax cut = a demand boost. 
ETAuto.com
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Dealers reported high footfalls post-GST cut and during the last week of September. 
The Times of India


Market Segments with Strength

SUVs and EVs saw especially strong interest (as highlighted in specific OEM reports).

For example, the premium manufacturer Mercedes‑Benz India reported a ~36% YoY increase in September, attributing part of this to GST reforms and festive uplift. 
India Today

Similarly, manufacturers of smaller/hatch vehicles benefited via tax cuts.

“Small cars, bikes up to 350 cc to get cheaper as GST reforms kick in.” 
Reddit

⚠️ Some caveats / Context

Although the month ended positively, the first three weeks were muted because many buyers postponed purchases in anticipation of lower taxes. So the net ~5% growth is ‘helped’ by a strong final week rather than uniform strength through the month. 
ETAuto.com
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Some categories (e.g., 3-wheelers, construction equipment) still declined. 
India Today
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Logistical or supply constraints were hinted at — deliveries and billing days may have limited some upside. 
Motoroids

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