GST reforms, Navratri drive 5.8% surge in passenger vehicle sales

Fada said retail sales rose in September as GST 2.0 and Navratri festivities revived demand across segments, with passenger vehicles up 5.8 per cent and two-wheelers 6.5 per cent

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Driven by the GST 2.0 reforms and Navratri festivities that coincided with its implementation during the latter half of September, retail sales for passenger vehicles posted a 5.8 per cent rise to 2,99,369 units, according to data shared by the Federation of Automobile Dealers Associations (Fada) on Tuesday.

 

Two-wheelers, tractors, and commercial vehicles were also up by 6.5 per cent, 3.6 per cent, and 2.6 per cent, respectively, while three-wheelers and construction equipment recorded a decline of 7.2 per cent and 19 per cent. Overall automobile retail sales were up 5.2 per cent compared to the same month in 2024. "For the first time ever, dealerships across the nation witnessed record-breaking footfalls and deliveries during Navratri, with overall retails surging by 34 per cent YoY — a historic high during any festive season," said Sai Giridhar, vice president, FADA.. Approximately, 1.15 million units were sold during the nine days since Navratri, versus 8,63,000. Powered by affordability improvements, festive offers, and pent-up demand, in two-wheelers was up by 36 per cent, cars by 35 per cent, and commercial vehicles by 15 per cent during the period.

  

“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,” said Sai Giridhar, vice-president, Fada.

 

Passenger vehicle sales rise

 

Among passenger vehicle manufacturers, Maruti Suzuki posted a 7 per cent rise to 1,23,242 units, Tata Motors around 26 per cent to 41,151 units, and Mahindra & Mahindra around 5 per cent to 37,659 units. Hyundai Motor India, however, recorded an 8 per cent dip in September sales to 35,812 units.