India Auto Sales Grow 5.2% in September
India’s retail automobile sector recorded a 5.2% year-on-year growth in September 2025, supported by GST cuts and festive season demand, according to the Federation of Automobile Dealers Associations.
Segment Performance
- Two-wheelers grew the most, rising 6.5% compared to last year.
- Passenger vehicles also performed strongly, with a 5.8% increase.
- Three-wheelers, however, slipped by 7.2%, marking a weak patch for that segment.
Festive and Policy Boost
Sales were subdued in the first three weeks of September but picked up significantly after September 22, when GST 2.0 reforms were rolled out. The onset of Navratri festivities further pushed demand, leading to record footfalls at dealerships and strong purchase momentum.
Drivers and Outlook
Analysts attribute the rebound to tax relief, festive sentiment, and rising rural incomes. Dealers expect demand to remain strong as Diwali season approaches, a period traditionally associated with peak automobile sales.
However, challenges such as supply chain bottlenecks, higher input costs, and potential interest rate pressures may weigh on sustained momentum. The coming months will test whether the surge extends beyond festive-driven demand.
