The automotive market is anticipating a new record in vehicle sales, influenced by the implementation of new GST rates on September 22nd and the coinciding Navratri festival. Several auto manufacturers have already achieved significant milestones. The positive trends observed in September are expected to continue into October, potentially leading to all-time high sales figures. A City Research report indicates an improvement in passenger vehicle and two-wheeler sales during September 2025, driven by festive demand and the effects of the recent GST cuts.
The report indicates that the festive season, starting on September 22nd, triggered a surge in the market, contrasting with the slower sales in August. Some auto original equipment manufacturers (OEMs) experienced limitations in wholesale sales, primarily due to delayed purchases by dealers and logistical issues. Tractor sales remained notably strong. With the full-month impact of the GST cuts and positive market sentiment, October is expected to deliver even stronger performance.
**Strong Performance by Auto Companies**
Bajaj Auto’s domestic two-wheeler sales increased by 5% year-on-year (YoY) and 48% month-on-month (MoM). Exports grew by 12%, while commercial vehicle sales decreased by 1%. Notably, exports saw a 67% increase. TVS Motor’s total two-wheeler sales increased by 11%, with a 12% rise in domestic sales and an 8% increase in electric vehicle (EV) sales. Hero MotoCorp’s domestic sales saw a 5% increase, contributing to an 8% overall sales increase. The company’s export numbers reflected a remarkable 95% growth.
**Growth in Passenger Vehicle Sales**
Maruti Suzuki saw strong retail sales with nearly 2 lakh deliveries and 2.5 lakh bookings pending. Wholesale sales decreased by 8% due to logistical problems. Together with Toyota, domestic sales decreased by 6%, but exports increased by 52%, leading to a 3% increase in total sales. Hyundai saw a 1% increase in domestic sales and a 44% surge in exports. Mahindra & Mahindra’s SUV sales increased by 10% and tractor sales by 50%, supported by festive demand. Tata Motors recorded a 45% growth in domestic passenger vehicle sales. Commercial vehicle sales remained stable, with small commercial vehicle and pickup sales increasing by 30%.