Indian Auto Industry Booms in Festive October; GST Cuts Fuel Record Sales

India's auto sector experienced substantial growth in October 2025, driven by strong festive demand and recent GST rate cuts. Passenger vehicle sales surged 17.2%, marking an all-time high for October dispatches, while two-wheeler sales saw a modest rise. Despite logistic limitations, the industry demonstrated robust resilience.

The Indian automobile industry witnessed remarkable growth across various segments in October 2025, buoyed by festive season demand and the effects of a recent GST rate reduction. According to data from the Society of Indian Automobile Manufacturers (SIAM), domestic sales of passenger vehicles soared 17.2% with 4,60,739 units dispatched to dealerships—a record high for October.

In the two-wheeler category, sales experienced a modest increase of 2.1%, reaching 22,10,727 units as compared to the previous year. Notably, scooter sales surged by 14.3%, while motorcycle sales declined by 4%. The three-wheeler segment also saw a positive trend, with an overall sales increase of 5.9% to 81,288 units, despite a drop in electric three-wheeler sales.

Rajesh Menon, Director General of SIAM, attributed the record numbers to the strong market recovery during the festival season and the GST cut effective from September 22, 2025. He noted that even with logistical challenges, the GST reduction led to a significant rise in vehicle registrations, hinting at sustained retail strength beyond wholesale figures.

(With inputs from agencies.)