The recent implementation of new GST rates from September 22nd, coupled with the Navratri festival, is poised to set a new record for vehicle sales. Several automotive companies have reported impressive performance during this period, with the momentum from September expected to continue into October. This could lead to record-breaking sales figures. A recent City Research report highlights the positive trends in passenger vehicle and two-wheeler sales observed in September 2025, attributing the growth to festive demand and the impact of the recent GST rate reductions.
The report notes that the commencement of the festive season on September 22nd triggered a market surge, contrasting with the slower sales in August. Some automotive OEMs faced limitations in wholesale sales, primarily due to delayed purchases by dealerships and logistical bottlenecks. Tractor sales demonstrated significant strength. The full-month effect of the GST cuts and the prevailing positive market sentiment are expected to contribute to an even stronger performance in October.
**Automakers Show Robust Recovery**
Bajaj Auto experienced a 5% year-on-year (YoY) increase in its domestic two-wheeler sales and a 48% month-over-month (MoM) surge. Export sales also increased by 12%, while commercial vehicle sales decreased by 1%. However, exports experienced a 67% increase. TVS Motor’s overall two-wheeler sales grew by 11%, with a 12% increase in domestic sales and an 8% rise in electric vehicle (EV) sales. Hero MotoCorp’s domestic sales climbed by 5%, driving an overall sales increase of 8%. The company’s export performance showed a remarkable 95% growth.
**Passenger Vehicle Sales Show Promising Growth**
Maruti Suzuki reported robust retail sales, delivering nearly 2 lakh vehicles and maintaining 2.5 lakh pending bookings. However, wholesale sales saw an 8% decrease due to logistical constraints. Domestic sales, in combination with Toyota, experienced a 6% decrease, while exports saw a 52% increase, resulting in a 3% overall sales increase. Hyundai’s domestic sales increased by 1%, with exports surging by 44%. Mahindra & Mahindra’s SUV sales increased by 10% and tractor sales by a substantial 50%, supported by festive demand. Tata Motors experienced a 45% growth in domestic passenger vehicle sales. Commercial vehicle sales remained stable, with small commercial vehicle and pickup sales increasing by 30%.