Record Vehicle Sales Expected in India: GST Cut and Festive Season Drive Growth

India's vehicle market is set for a record-breaking performance, fueled by the recent GST rate cut implemented on September 22, 2025, and the festive season, especially Navratri. Reports by Citi Research highlight that passenger vehicle and two-wheeler sales rebounded strongly in September after a slower August, boosted by renewed consumer confidence and lower prices due to GST reduction.

Key Highlights from September 2025 Sales

• Bajaj Auto’s domestic two-wheeler sales rose 5% year-on-year and 48% month-on-month, with exports up 12%. Commercial vehicle exports surged 67%.

• TVS Motor reported an 11% overall two-wheeler sales increase, with domestic sales up 12% and electric vehicle sales growing 8%.

• Hero MotoCorp saw domestic sales growth of 5% and total sales up 8%, with exports increasing by a robust 95%.

• Maruti Suzuki delivered nearly 2 lakh vehicles and managed record exports of 42,204 units, though domestic wholesale sales fell 8% due to logistics.

• Tata Motors returned to the second spot in domestic passenger vehicle sales with a record 60,907 units—up 47% year-on-year—led by the Tata Nexon crossing 22,500 monthly sales for the first time.

• Mahindra & Mahindra posted a 10% jump in SUV sales and a 50% increase in tractor sales, largely due to festive demand.

Market Outlook

The momentum from September is expected to continue through October, potentially setting new record highs for vehicle sales in India. Improved retail activity, festive purchases, and the GST cut’s impact on pricing have created a favorable environment for growth in both passenger and commercial vehicle segments.