India's Auto Industry Hits Record Highs Amid Festive Demand Boost

India's automobile sector experienced significant growth in October 2025 due to robust festive demand and a recent GST reduction. Passenger vehicle sales soared by 17.2%, while two-wheelers saw a modest increase. Despite logistical limitations, the industry marked its highest-ever October dispatches, underscoring a strong market recovery.

India's automobile industry has accelerated to new heights, recording substantial gains in October 2025, driven by strong festive demand and the government's recent GST rate reduction. The Society of Indian Automobile Manufacturers (SIAM) reported a remarkable increase in domestic sales of Passenger Vehicles (PV), which rose by 17.2% as 4,60,739 units were dispatched to dealerships, setting a new record for October sales.

The Two-Wheeler segment also experienced an uptick, albeit modestly, with a 2.1% growth tallying 22,10,727 units sold compared to the previous year. Notably, scooter sales surged by 14.3%, while motorcycle sales saw a 4% decline. The Three-Wheeler segment presented a robust 5.9% increase in sales, though sales of electric three-wheelers lagged, with a noticeable decline in e-rickshaw and e-cart sales.

An overall positive trend was evident in total automobile production, which reached 28,01,412 units in October 2025. Rajesh Menon, Director General of SIAM, attributed this remarkable uptick to the festive buying sentiment and the beneficial GST cuts effective since September. He highlighted that the highest-ever dispatches were constrained only by logistical challenges, with vehicle registrations also showing significant growth over wholesale figures.

(With inputs from agencies.)