Two-wheeler sales soar to record high in Oct on GST cuts, festive demand

India's two-wheeler industry recorded its best-ever monthly sales in October 2025, buoyed by GST 2.0 rate cuts, festive buying and strong rural demand, with ICRA projecting steady growth for FY26.

India’s two-wheeler industry posted its strongest-ever monthly performance in October 2025, with retail sales rising 51.8 per cent year-on-year to an all-time high of 3.15 million units, according to data from rating agency ICRA. The surge comes after muted sentiment in September, which was impacted by the GST 2.0 transition.

 

The revised GST rates, combined with strong festive demand during Dussehra and Diwali, helped revive buying momentum sharply. Rural markets, buoyed by healthy farm incomes and a favourable monsoon, outperformed urban centres and contributed significantly to the growth.

 

Electric two-wheelers continued to hold steady in the overall mix.