Navratri drives record auto retail sales, overall up 5.2% in Sep: Fada

Fada said vehicle sales surged after September 22 as GST 2.0 reforms took effect, with Navratri 2025 delivering record-high footfalls and festive purchases across all categories

Retail vehicle sales increased 5.22 per cent year-on-year (Y-o-Y) in September, with two-wheelers up 6.5 per cent and passenger vehicles (PVs) 5.8 per cent, according to data from the Federation of Automobile Dealers Associations (Fada) released on Tuesday. However, three-wheelers saw a 7.2 per cent decline Y-o-Y.

 

According to the industry body, sales during the first 21 days remained muted as customers were waiting for the goods and services tax (GST) reforms to kick in. Sales surged after September 22, driven by Navratri demand and GST rationalisation.

 

Fada Vice-President Sai Giridhar said, “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."

   

Dealers also used this period to replenish inventory. Stock levels for the PV segment rose to around 60 days, reflecting festive preparedness ahead of October’s peak season.

Navratri sales at record-high levels

Sales remained at historically high levels during Navratri, with overall retail sales rising 34 per cent Y-o-Y. “Navratri 2025 will go down as one of the most memorable chapters in India’s automobile retail journey. For the first time, dealerships across the nation witnessed record-breaking footfalls and deliveries, a historic high during any festive season," said Giridhar.

 

The growth was led by two-wheelers, up 36 per cent on the back of GST cuts, festive offers, and pent-up demand. This was followed by PVs, which increased 34.8 per cent. 

 

Meanwhile, three-wheelers reported a 25.5 per cent rise owing to urban mobility revival, and commercial vehicles rose 14.8 per cent during the same period. Tractors also logged an 18.7 per cent increase on improving rural sentiment, the data showed. In contrast, only construction equipment saw a decline of 18 per cent.

 

"This Navratri was not just a festival for consumers; it was a celebration for every dealer, every salesperson, and every worker in India’s mobility ecosystem. It reminded us what the right policy at the right time can do for a nation’s sentiment," said Giridhar.

October 2025 outlook

Fada expects Dhanteras and Deepawali to deliver all-time high sales, with auto dealerships witnessing surging enquiries and bookings across two-wheelers, passenger vehicles, and commercial fleets.

• Above-normal monsoon, strong kharif harvest, and steady rates to boost purchasing power
• Dhanteras and Deepawali to deliver peak festive sales with affordability at its best
• GST 2.0 benefits, aggressive original equipment manufacturer (OEM) schemes, and easy finance to draw new buyers and upgraders
• If logistics and supply chains perform smoothly, India will witness its best-ever festive retail season

Giridhar said that India stands at the cusp of its most spectacular 42-day festive season in history. "With GST 2.0 rate cuts transforming affordability and confidence across every income segment, the nation’s auto retail sector has entered an unprecedented growth phase. The unique alignment of favourable economic, climatic, and policy factors is set to propel sentiment to record levels, turning this Dhanteras and Deepawali into a celebration not just of light, but of renewed mobility aspirations across India," he said.