Festive Demand Pushes Auto Retail Sales Up 21% to Record 52 Lakh Units
FADA reports India’s best-ever festive season for vehicle sales, driven by GST 2.0 reforms, rural recovery, and strong two-wheeler demand
Pune: India’s auto retail industry logged its best-ever festive season performance, with vehicle sales surging 21.1 per cent year-on-year to 52.38 lakh units during the 42-day period from Dussehra to Diwali, according to the Federation of Automobile Dealers Associations (FADA).
Dealers had sold 43.25 lakh units during the same festive window last year. FADA President C.S. Vigneshwar said this year’s festive period marked a milestone for the auto sector, driven by robust consumer sentiment, GST 2.0 tax cuts, and improved rural demand.
“October 2025 will be remembered as a landmark month for India’s auto retail, where reforms, festivities, and rural resurgence came together to deliver record-breaking results,” Vigneshwar said.
Passenger vehicle sales jumped 23 per cent to 7,66,918 units, up from 6,21,539 units a year earlier. He attributed the rise to increased affordability for middle-class buyers following GST reforms.
Two-wheelers led the surge with 22 per cent growth, selling 40,52,503 units against 33,27,198 units last year, supported by stronger rural cash flows and affordability.
Sales of three-wheelers and commercial vehicles also rose 9 per cent and 15 per cent, respectively, during the festive window. In October 2025 alone, total retail sales reached a record 40.53 lakh units, up 41 per cent year-on-year, the highest-ever monthly performance for both passenger vehicles and two-wheelers.
Passenger vehicle sales for October rose 11.35 per cent to 5,57,373 units, while two-wheeler sales soared 52 per cent to 31,49,846 units from 20,75,578 units in October 2024.
Looking ahead, FADA expects the momentum to continue, citing the lasting impact of GST 2.0, stable rural incomes, and upcoming wedding and harvest seasons as key growth drivers.
