Festive Demand, GST Cut Drive Up Record Vehicle Sales In October
Improved retail sentiment in Automobile sector despite persistent logistical challenges
Pune : Automobile makers in India posted their highest ever passenger vehicle, two and three-wheeler dispatches to their dealers in October aided by robust festive demand and GST rate cut, the Society of Indian Automobile Manufacturers or SIAM said on Friday.
Total passenger vehicle wholesales in October rose 17 per cent to 4.61 lakh units, up from 3.93 lakh units in October last year.
This marks one of the strongest monthly expansions for the segment this financial year, supported by improved buyer sentiment and an early start to festive purchases.
Significantly, sports utility vehicles or SUVs have captured 58.47 per cent of total passenger vehicle sales in October 2025, accounting for more than half of total domestic volumes.
Passenger cars dispatches climbed 8.7 per cent on-year to 1.39 lakh units, while utility vehicles jumped 10.7 per cent on year to 2.51 lakh units.
Similarly, two-wheeler sales increased by 2 per cent to 22.11 lakh units during the month, as against 21.64 lakh units in the year-ago period, SIAM said in a statement. Scooter sales were up 14 per cent on-year at 8,24,003 units last month as compared with 7,21,200 units in October 2024.
Motorcycle dispatches, however, declined 4 per cent on-year to 13.35 lakh units in October.
"Passenger vehicles, two and three-wheeler segments posted their highest ever dispatches to dealers in October, primarily buoyed by the festive demand and the recent GST rate reduction, despite being constrained due to certain logistic limitations," said Rajesh Menon, Director General at SIAM.
With the reduced GST rates becoming effective from September 22, October witnessed a strong uptick in vehicle registrations, resulting in a notable rise compared to wholesales, he pointed out.
Auto industry experts said the industry’s overall performance in October signals improving retail sentiment despite persistent logistical challenges.
According to them, strong festive traction, and the benefits of GST rationalization, has positioned the automobile sector on a firmer growth path heading into the peak festive months.