India's auto retails surge by September end on festive and GST optimism; reports FADA

The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for September'25.

According to FADA, September 2025 was an exceptionally unique month for Indias automobile retail industry. The first three weeks were largely muted, with customers holding back in anticipation of the GST 2.0 reforms.

However, the dynamics changed dramatically in the final week as Navratri festivities coincided with the implementation of lower GST rates, reviving customer sentiment and accelerating deliveries across most vehicle categories.

As a result, the month ended with an overall 5.22% YoY growth, with all segments except three-wheelers and construction equipmentshowing positive momentum.

2Ws grew by 36%, powered by affordability improvements, festive offers, and pent-up demand finally translating into retail joy.

PVs clocked a robust 34.8% growth, as a wave of new customers entered showrooms and existing ones upgraded to higher variants, taking advantage of lower GST and irresistible festive schemes.

CVs rose by 14.8%, reflecting renewed confidence among operators as financing resumed and infrastructure optimism returned.

3Ws expanded by 24.5%, driven by strong urban mobility demand, while Tractors recorded an impressive 18.7% growth, despite uneven monsoons.

Overall, the near-term outlook for October 2025 remains highly optimistic, powered by economic resilience, festive euphoria, and the transformational impact of GST 2.0 heralding a golden phase for Indian auto retail.

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