September witnessed a downturn in automobile retail sales; however, the market showed signs of recovery due to heightened demand ahead of the festive season. This has sparked optimism for October’s performance. Vehicle registration data indicates that approximately 15.1 lakh vehicles were registered by Tuesday afternoon, representing a 13.28% decrease compared to the 17.4 lakh units registered last year. Industry analysts note that these numbers are based on registrations, and actual deliveries may follow. Thus, some of September’s sales will be reflected in October’s data. The first three weeks of September saw subdued demand as consumers awaited festival discounts and GST adjustments. Moreover, the Pitru Paksha period contributed to a deferral of large purchases for many.
Sales accelerated from September 22nd, coinciding with the start of Navratri and the effects of GST changes. Showrooms saw more activity, bookings, and inquiries, especially for passenger cars and two-wheelers. Maruti Suzuki sold over 75,000 vehicles in just four days, between September 22nd and 25th. In comparison, Maruti sold around 1.35 lakh vehicles in the entire month of August, highlighting a strong recovery at the end of the month.
Experts advise caution when interpreting September’s data in isolation, since the timing of festivals differs from the previous year. As Navratri occurred in October 2024, September did not reflect a similar impact. This year, demand began to increase from late September.
The automotive sector is upbeat about the upcoming months, anticipating demand driven by the festive season in October and the wedding season that follows. New GST rates are expected to support growth: 18% on petrol cars up to 1200cc and diesel cars up to 1500cc, 40% on larger vehicles, and only 5% on electric vehicles.