India’s Auto Dispatches Hit Record High In September Despite GST Shift; Festive Tailwinds Brighten Outlook

India’s automobile industry maintained its growth momentum in September 2025, recording the highest-ever monthly dispatches across key segments—passenger vehicles, two-wheelers, and three-wheelers—despite the rollout of revised GST rates during the month, data from the Society of Indian Automobile Manufacturers (SIAM) showed on Wednesday.

Passenger vehicle (PV) wholesales from manufacturers to dealerships rose 4.4% Year-on-Year (YoY) to 3,72,458 units in September, compared to 3,56,752 units in the same month last year. Two-wheeler sales witnessed a sharper 7% rise to 21,60,889 units from 20,25,993 units a year ago, while three-wheelers grew 5.5% to 84,077 units.

“Even though the new GST regime was applicable for just nine days in September, the industry has recorded its highest-ever sales for the month across all major categories,” said SIAM President Shailesh Chandra. Calling the new GST 2.0 a “landmark reform,” he added that it is expected to enhance affordability and stimulate demand across the automotive value chain in the long term.

During the July–September quarter, PV sales stood at 10,39,200 units—a 1.5% dip YoY—while two-wheelers grew 7% to 55,62,077 units. Three-wheelers logged a 10% rise at 2,29,239 units. However, the PV export segment hit an all-time high at 2.42 lakh units, up 23% YoY, reflecting resilient overseas demand.

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India's automobile industry showed mixed trends in the second quarter (Q2) of the Financial Year (FY)2025-26, with green shoots of recovery visible across key segments, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday.

The SIAM data shows that the passenger vehicle (PV) sales reached 1.04 million units during July-September 2025, reflecting a marginal de-growth of 1.5 per cent year-on-year.
However, September sales climbed 4.4 per cent, buoyed by GST reductions, improved consumer sentiment, and early festive demand. Utility Vehicles (UVs), although still dominating with two-thirds share, dipped by 2.1 per cent. Notably, PV exports hit an all-time high of 2.42 lakh units--a 23 per cent surge over last year.

The Two-Wheeler segment emerged strong with 5.56 million units sold, marking a 7.4 per cent growth. Scooters led the charge with a 12.4% rise, while motorcycles followed at 5 per cent. The segment also celebrated record-high exports at 1.3 million units, up 25 per cent YoY.

Three-Wheelers registered their highest-ever Q2 sales of 2.29 lakh units, growing 9.8 per cent, powered by the passenger carrier sub-segment and easier financing. Exports soared 51 per cent, touching a six-year high of 1.23 lakh units. Commercial Vehicles posted 8.3 per cent growth at 2.40 lakh units, driven by strong freight demand and urban logistics. Exports grew 22 per cent to 0.24 lakh units.

SIAM noted that the industry enters the second half of FY2025-26 “with renewed optimism,” underpinned by festive demand, stable macroeconomic conditions, and supportive policy measures.

Reports indicate that auto retail sales surged during the Navratri period, growing between 15–35% year-on-year across PV and two-wheeler categories. Centrum Institutional Research observed that PV retail demand jumped 15–22% YoY, led by strong showings from Maruti Suzuki, Tata Motors, Honda, and Mahindra & Mahindra (M&M).

With Dhanteras and Diwali expected to further lift sentiment, automakers are bracing for a robust festive quarter—signalling a bright finish to 2025 for India’s auto industry.