From GST to Festivities: India’s Auto Industry Accelerates Record Sales

Updated: November 14, 2025 15:00

Image Source: India Today

India's automobile sector posted robust growth in October 2025 with passenger vehicle sales soaring to over 460,000 units. Strong festive season demand, combined with GST rate cuts effective late September, fueled highest-ever October sales for passenger vehicles, two-wheelers, and three-wheelers.

India’s automobile industry witnessed a strong surge in October 2025, powered mainly by festive buying and the newly implemented GST rate reductions, as per data released by the Society of Indian Automobile Manufacturers (SIAM).

Passenger vehicle sales stood at an impressive 460,739 units in October, marking a significant 17.2% increase year-over-year and the highest October tally ever recorded for this segment. The two-wheeler market also saw robust growth with sales rising 2.1% to 2,210,727 units. Three-wheeler sales were similarly strong at 81,288 units, underscoring overall sector vitality.

The total domestic passenger vehicle sales reflecting increasing consumer confidence and affordability triggered by GST cuts. According to SIAM’s Director General Rajesh Menon, the GST rate reduction effective from September 22 gave a substantial push to vehicle registrations in October, translating into robust wholesales and healthy demand momentum across all major vehicle segments.

This sales spike underscores India’s auto industry resilience and its positive outlook heading into the festive and post-festive months, supported by favorable taxation policies, easing lending rates, and strong consumer sentiment.

Notable Updates:

- Passenger vehicle sales surged 17.2% YoY to 460,739 units, highest-ever for October.

- Two-wheeler sales grew 2.1% YoY, reaching 2,210,727 units.

- Three-wheeler sales stood strong at 81,288 units, validating sustained demand.

- GST rate cuts effective from September 22 significantly boosted registrations.

- Robust festive season demand aligned well with government tax reforms.

- Total vehicle production (passenger, three-wheeler, two-wheeler, quadricycle) hit 2.8 million units.

- Industry sentiment remains buoyant for Q3 2025 on positive policy and demand factors.

This data from SIAM reflects the Indian automobile industry's recovery and growth trajectory, highlighting the combined effect of tax reforms and festive buying patterns as key growth drivers.

Sources: Society of Indian Automobile Manufacturers (SIAM), ANI News, Autocar Pro, Economic Times Auto.

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