India’s Car Sales Hit Record High in October
India’s passenger vehicle industry recorded its best-ever monthly performance in October 2025, with wholesales reaching approximately 470,000 units, up 17.2 percent from 401,105 units in October 2024. This marks the highest dispatch total to date, surpassing the previous record of 405,522 units in January 2025. During the month, prominent automakers including Maruti Suzuki India Ltd., Mahindra & Mahindra Ltd., Tata Motors Passenger Vehicles Ltd. and Toyota Kirloskar Motor Private Ltd. logged record domestic volumes. The surge was driven by strong festive-season demand and recent reductions in GST rates for many vehicle segments.
What’s Driving the Boom
The car market benefited from a combination of factors. Festival buying momentum during Dussehra, Dhanteras and Diwali increased demand, while GST rationalisation made cars more affordable. For example, Maruti Suzuki’s domestic wholesales rose 10.5 percent year-on-year to 176,318 units, and Mahindra’s SUV sales jumped 31 percent to 71,624 units in October 2025. Tata Motors’ sales also climbed 27 percent to 61,134 units. In contrast, Hyundai Motor India Ltd. reported a 3.2 percent decline in domestic wholesales, with 53,792 units sold.
Broader Implications
This strong monthly result suggests renewed optimism in India’s auto market and signals a possible consumption boost across adjacent sectors such as financing, insurance and aftermarket. Automakers may now face the challenge of sustaining production amid tight supply chains and managing inventory levels to avoid shortages. The surge also places pressure on dealerships to fulfil bookings quickly to maintain growth momentum.
