A new record in vehicle sales is anticipated, driven by the implementation of new GST rates from September 22nd and the Navratri festival. Several automotive manufacturers have achieved significant milestones. The positive trends observed in September are expected to continue into October, potentially pushing sales to unprecedented levels. A City Research report indicates improvements in passenger vehicle and two-wheeler sales during September 2025, fueled by festive demand and recent reductions in GST rates.
The report details that the festive season’s commencement on September 22nd led to a market surge compared to the slower sales figures in August. Some automotive original equipment manufacturers (OEMs) faced constraints in wholesale sales due to delayed dealer purchases and logistical problems. Tractor sales were particularly strong. October is expected to showcase even stronger performance due to the full-month impact of GST cuts and the overall positive market outlook.
**Automotive Companies Experience Strong Rebound**
Bajaj Auto saw a 5% year-over-year (YoY) growth in domestic two-wheeler sales and a 48% month-over-month (MoM) increase. Exports rose by 12%, while commercial vehicle sales saw a 1% decline. Conversely, exports surged by 67%. TVS Motor’s total two-wheeler sales climbed by 11%, encompassing a 12% rise in domestic sales and an 8% increase in electric vehicles (EVs). Hero MotoCorp’s domestic sales improved by 5%, contributing to an overall sales increase of 8%. The company’s exports experienced remarkable growth, with a 95% surge.
**Passenger Vehicle Segment Witnesses Strength**
Maruti Suzuki reported strong retail sales. The company delivered approximately 2 lakh vehicles and had 2.5 lakh bookings pending. However, wholesale sales declined by 8% due to logistical hurdles. Combined with Toyota, domestic sales decreased by 6%, while exports increased by 52%, leading to a 3% overall sales increase. Hyundai’s domestic sales increased by 1%, and exports experienced a 44% surge. Mahindra & Mahindra’s SUV sales increased by 10% and tractor sales by 50%, supported by the festive demand. Tata Motors achieved a 45% growth in domestic passenger vehicle sales. Commercial vehicle sales remained steady, with small commercial vehicles and pickup sales increasing by 30%.