The implementation of new GST rates from September 22nd and the onset of Navratri have spurred a significant surge in vehicle sales. Several companies have achieved new records during this period. This momentum from September is expected to provide substantial benefits in October, potentially leading to record-breaking vehicle sales. According to a City Research report, the sales of passenger vehicles and two-wheelers showed improvement in September 2025. This growth is attributed to festive demand and the recent GST rate cuts.
The report highlights that the festive season began on September 22nd, after which the market experienced an upswing compared to the slower sales in August. Wholesale sales for some auto companies (OEMs) were limited due to delayed purchases by dealers and logistical challenges. Tractor sales remained exceptionally strong. Considering the full-month impact of the GST cuts and positive market sentiment, an even more impressive performance is anticipated in October.
**Strong Recovery by Auto Companies**
Bajaj Auto witnessed a 5% year-on-year (YoY) increase in domestic two-wheeler sales and a 48% month-on-month (MoM) surge. Exports grew by 12%, while commercial vehicle sales declined by 1%. However, exports increased by 67%. TVS Motor’s total two-wheeler sales rose by 11%, with a 12% increase in domestic sales and an 8% rise in electric vehicles (EVs). Hero MotoCorp’s domestic sales grew by 5%, and total sales increased by 8%. The company’s exports saw a remarkable 95% growth.
**Strong Performance in Passenger Vehicle Sales**
Maruti Suzuki experienced robust retail sales. The company delivered nearly 2 lakh vehicles and had 2.5 lakh bookings pending. However, wholesale sales decreased by 8% due to logistical issues. Domestic sales, in conjunction with Toyota, decreased by 6%, but exports increased by 52%, resulting in an overall sales increase of 3%. Hyundai’s domestic sales increased by 1%, while exports surged by 44%. Mahindra & Mahindra’s SUV sales increased by 10% and tractor sales by a substantial 50%, supported by festive demand. Tata Motors recorded a 45% growth in domestic passenger vehicle sales. Commercial vehicle sales remained stable, while small commercial vehicles and pickup sales increased by 30%.