New Delhi: GST 2.0 reforms, extended festivities, and rural demand boosted October automobile sales. Consequently, the sector recorded 4.02 million units, Federation of Automobile Dealers Associations (FADA ) reported. This marked a 40.5% rise compared to 2.87 million units last year. Dealers highlighted strong consumer confidence and growing preference for personal vehicles. Overall, October became a record-breaking month for the Indian automobile industry.
Passenger vehicle (PV) sales reached 5.57 lakh units in October, marking an 11 per cent increase. Two-wheelers recorded their highest-ever monthly sales at 31.5 lakh units, up 52 per cent year-on-year. Commercial vehicles (CVs) grew 17.7 per cent, boosted by rising freight, rural logistics, and infrastructure projects. Tractors expanded 14.2 per cent.
FADA President CS Vigneshwar called October a landmark month for India’s auto retail. Overall retail sales grew 40.5 per cent YoY, with PVs and two-wheelers achieving lifetime highs. He noted that the surge signals renewed consumer confidence and strong economic momentum across urban and rural markets.
After a quiet September due to the GST 2.0 transition, October saw a swift rebound. Pent-up demand combined with festive sentiment and GST excitement propelled sales to historic levels. Dealers reported higher enquiries, stronger conversions, and quick PV inventory turnover, which corrected by five to seven days.
GST 2.0 rate cuts, particularly for entry-level two-wheelers and small cars, improved affordability. This encouraged first-time buyers to enter the market. Rural India emerged as the growth engine, supported by a strong monsoon, higher farm incomes, and increased infrastructure spending.
The 42-day festive period further amplified demand. Consumers responded to the combination of tax relief and festive cheer, converting sentiment into purchases. FADA highlighted that GST 2.0 reforms, lowering small-car rates, made vehicle ownership more attainable for cost-conscious buyers.
October 2025 stands as a defining month for India’s auto industry. Overall vehicle retails surged 21 per cent YoY, affirming the success of GST 2.0. Vigneshwar said the reforms truly reflect “Simpler Tax, Stronger Growth” and signal the rise of Bharat as a key automotive market.
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