New Delhi, October 7, 2025: India’s automobile retail industry has entered what many dealers are calling its most euphoric festive phase in years. Fueled by the dual forces of GST 2.0 rate cuts and the Navratri festivities, overall retail sales surged 34% year-on-year, marking the highest growth ever recorded during a festive season.
From commuter bikes in small towns to high-demand SUVs in metropolitan areas, showrooms across the country reported unprecedented footfalls and deliveries.
According to data released by the Federation of Automobile Dealers Associations (FADA), every major segment contributed to this record momentum: two-wheelers rose by 36%, passenger vehicles by 34.8%, three-wheelers by 24.5%, commercial vehicles by 14.8%, and tractors by 18.7%. However, construction equipment was the only sector to decline, by 18%.
“Navratri 2025 will be remembered as one of the most memorable chapters in India’s automobile retail journey, a true ‘Bachat Utsav’ sparked by the visionary GST 2.0 reform announced by Hon’ble Prime Minister Shri Narendra Modi ji,” said Sai Giridhar, Vice President of FADA.
“For the first time, dealerships across the nation experienced record-breaking footfalls and deliveries, with overall retail sales surging 34% year-on-year, a historic high for any festive season. Every major segment played a part in this extraordinary momentum.”
How Hero, Tata, and Mahindra Outperformed in the Festive Pack
Even as Maruti Suzuki maintained its commanding lead in passenger vehicles with retail sales of around 1.61 lakh units and a 41% market share, the real momentum of this Navratri rally came from Tata Motors, Mahindra & Mahindra, and Hero MotoCorp, each posting double-digit share gains and outpacing industry averages.
In passenger vehicles, Tata Motors sold about 53,700 units (13.7% share) and Mahindra 49,400 units (12.6%), both buoyed by strong SUV demand led by the Nexon, Punch, Scorpio-N, and XUV700. Their performance underscores India’s accelerating pivot toward homegrown SUV brands, which are increasingly dominating the ₹10–20 lakh price bracket once ruled by global automakers.
In the two-wheeler segment, Hero MotoCorp remained the undisputed leader, retailing approximately 4.74 lakh units (25.1% share), powered by entry-level affordability, rural cash flow recovery, and GST 2.0-driven price benefits. By comparison, TVS Motor sold 3.84 lakh units and Bajaj Auto 3.09 lakh, while Ola Electric saw a dip to just 1% market share amid intensifying price competition.
“PV clocked a robust 34.8% growth, as a wave of new customers entered showrooms and existing ones upgraded to higher variants, taking advantage of lower GST and irresistible festive schemes,” said Giridhar. “CVs rose 14.8%, reflecting renewed confidence among operators as financing resumed and infrastructure optimism returned.”
FADA noted that not only were new customers returning to showrooms, but existing ones were also upgrading to higher-end variants, spurred on by lower GST rates and appealing festive offers. “Passenger vehicles saw a robust 34.8% growth, as a wave of new customers entered showrooms and current owners upgraded to premium variants, taking advantage of lower GST rates and irresistible festive promotions,” Giridhar added.
“Navratri 2025 will be remembered as one of the most memorable chapters in India’s automobile retail journey, a true ‘Bachat Utsav’ sparked by the visionary GST 2.0 reform announced by Hon’ble Prime Minister Shri Narendra Modi ji,” said Sai Giridhar, Vice President of FADA.
“For the first time, dealerships across the nation experienced record-breaking footfalls and deliveries, with overall retail sales surging 34% year-on-year, a historic high for any festive season. Every major segment played a part in this extraordinary momentum.”
The heartbeat of this revival came from rural India, where strong kharif yields and stable cash flows kept sentiment positive. Two-wheelers and tractors, both indicators of rural health, grew by 6.5% and 3.6% respectively in September, with significant acceleration through Navratri. Giridhar attributed the turnaround to “renewed confidence among operators as financing resumed and optimism regarding infrastructure returned,” especially in the commercial vehicle segment.
A September Turnaround
FADA’s September data highlights how quickly momentum shifted once GST 2.0 was implemented. “September 2025 was a uniquely transformative month for India’s automobile retail industry. The first three weeks were largely slow, with customers holding back in anticipation of the GST 2.0 reforms. However, the dynamics dramatically shifted in the final week as the Navratri festivities coincided with the implementation of lower GST rates, reviving customer sentiment and accelerating deliveries across most vehicle categories,” Giridhar explained.
He noted that “limited billing days restricted the full potential of the rebound,” but dealers used that time to replenish inventory, pushing passenger vehicle stock levels to about 60 days in preparation for the Diwali rush.
The Road Ahead: From Navratri to Diwali
FADA anticipates that the momentum will continue to strengthen through October’s 42-day festive window. “The momentum built in the closing days of September will carry forward into Deepawali, marking a promising conclusion to the festive period,” Giridhar said.
Analysts agree that the combination of policy reform, consumer liquidity, and festive sentiment has revitalized the auto market. With Hero, Tata, and Mahindra leading in volume and brand appeal, and dealers entering October with renewed confidence, India’s auto revival appears set to sustain well beyond Diwali.
As Giridhar summed it up, Navratri 2025 was more than just a retail event; it was “a celebration for every dealer, every salesperson, and every worker in India’s mobility ecosystem… a reminder of what the right policy at the right time can achieve for a nation’s sentiment.”
