Navratri and GST 2.0 Boost Auto Retail Sales in India; FADA Reports 5.22% Monthly Growth
In September 2025, 18.27 lakh units were sold, compared to 17.37 lakh units in the previous year, marking a 5.22% growth.
By Sanorita
The revision in GST and the Navratri festival helped India’s auto retail sector deliver solid year-on-year growth, according to data from the Federation of Automobile Dealers Associations (FADA). In September 2025, 18.27 lakh units were sold, compared to 17.37 lakh units in the previous year, marking a 5.22% growth. The start of the month was slow as buyers waited for clarity on tax reforms, but the momentum picked up after GST 2.0 was introduced and Navratri celebrations began on September 22. The two-wheeler segment was a star performer, with a growth of 6.51% year-on-year. It sold 12.88 lakh units last month, compared to 12.09 lakh units in September 2024. Passenger vehicles also saw healthy growth of 5.8%, reaching 2.99 lakh units.
As for commercial vehicles, the sales of light CVs grew by 6%, medium commercial vehicles increased by nearly 12%, and tractors rose by 3.6%. However, three-wheeler sales dropped by 7.2%, mainly because passenger electric rickshaws fell sharply by 22.6%. The sales of construction equipment fell by 19%, and heavy commercial vehicles decreased by about 5.7%. On the positive side, goods electric rickshaws and personal three-wheelers saw strong growth of 32% and 59%, respectively.
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Despite a healthy year-on-year growth, vehicle sales in India saw a noticeable dip month-on-month in September 2025. Total retail sales dropped by 6.98% to 18.27 lakh units from 19.65 lakh units in August. Meanwhile, the sales of 2Ws saw a 6.26% decline from 13.74 lakh units sold in August. Passenger vehicle sales also dropped by 7.39% and the three-wheeler segment followed suit, falling 4.11%. Despite the downward trend across major segments, a few categories offered signs of recovery. For instance, the sales of construction equipment jumped by 20.36%, and personal-use three-wheelers rose 9.52%.
Navratri 2025: India’s Auto Sector Sees 34% YoY Growth
The period of Navratri in India (September 22 to October 2) helped India’s auto retail sector post record-breaking performance across segments. The overall sales surge 34% year-on-year. The Two-wheeler sales jumped 36% with GST benefits and attractive discounts. Meanwhile, Passenger vehicle sales rose 34.8%, supported by increasing affordability.
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The sales in the three-wheeler segment grew by 24.5%, while Commercial vehicles saw a rise of 14.8%. The only segment that lagged was construction equipment, which declined 18%, mainly due to heavy rains disrupting construction activity.
