Auto Sales Surge in October, Driven by GST Cuts and Festive Season

Auto Sales Surge in October, Driven by GST Cuts and Festive Season

Issue: To report on the retail and wholesale performance of India’s automotive sector in October 2025 and identify the key drivers of the strong industry momentum following the GST rate rationalization (GST 2.0).

Facts:

• The GST rate cut on various auto segments was implemented in late September 2025.
• October captured the bulk of the initial festive season sales and strong demand.
• Auto manufacturers reported strong wholesale and retail figures for the month.

Decision:

The Indian automotive industry saw a strong surge in sales momentum in October 2025, driven by the full impact of the GST rate cut combined with the festive season buying spree.

Key TakeDowns:

• Wholesale Performance: The month reflected solid wholesale numbers, with the Commercial Vehicle (CV) segment performing strongly:
  • Ashok Leyland posted a 16% increase in CV sales (against an estimated 11%).
  • Tata Motors reported a 10% Year-on-Year (Y-o-Y) rise in CV sales.
• Passenger Vehicle (PV) Growth: PV sales were largely in line with high expectations, with growth led by SUVs and premium models.
  • Mahindra & Mahindra recorded a 31% Y-o-Y rise in SUV sales (its highest monthly growth so far).
  • Maruti Suzuki’s total sales rose 7%.
  • Tata Motors reported a 27% increase in its PV segment.
• Retail Momentum: At the retail level, Vahan registration data confirmed the momentum: registrations since Navratri rose 23% for passenger vehicles and 22% for two-wheelers.
• EV Segment Mixed: Performance in the electric two-wheeler space was mixed. While Ather Energy saw strong growth (registrations up 73% Y-o-Y), Ola Electric underperformed, slipping in market share.
• Outlook: The current trends indicate that the industry is likely to meet its FY26 volume estimates, and the full effect of Diwali sales is expected in the November data.