New Delhi: Automobile retail sales across the domestic market witnessed a 21 per cent year-on-year increase in the 42-day festive season led by record registrations of passenger vehicles and two-wheelers aided by GST rejig enabled drop in prices across segments, dealer' body FADA said on Friday.Overall retail sales rose to 52,38,401 units in the festive period this year as compared with 43,25,632 units in the same period last year, registering an increase of 21 per cent.
"The 42-day festive period of 2025 stands as a defining milestone for India's auto retail, delivering the highest-ever sales and growth across categories," Federation of Automobile Dealers Associations (FADA) President C S Vigneshwar said in a statement.Passenger vehicle registrations rose to 7,66,918 units during the period as against 6,21,539 units in the same period last year, logging an increase of 23 per cent.
"The GST 2.0 vision of empowering affordability and boosting middle-class consumption found real reflection on dealership floors. Compact and sub-4-metre cars saw strong resurgence as reduced tax rates expanded the buying base. Dealers also noted that retail momentum exceeded supply in several models," Vigneshwar stated.Two-wheeler retails rose to 22 per cent to 40,52,503 units as compared with 33,27,198 units in 2024.
The segment was powered by improved rural sentiment, better liquidity, and the affordability impact of GST rationalisation, Vigneshwar stated.Dealers described it as the best festive season in recent memory, with strong traction in commuter bikes and scooters, alongside rising EV interest, he added.Similarly, three-wheeler and commercial vehicle registrations rose 9 per cent and 15 per cent, respectively during the 42-day period.
"This season's success has reaffirmed that the GST 2.0 reform is not just a tax simplification, but a catalyst for consumer-led growth and national prosperity. It has lowered ownership costs, energised Bharat's economy, and rekindled aspiration in every segment of society," Vigneshwar stated.For the month of October, automobile retail sales rose 41 per cent year-on-year to 40,23,923 units, driven by all-time high monthly sales of both passenger vehicles and two-wheelers.
Passenger vehicle registrations rose to 5,57,373 units last month, up 11 per cent against 5,00,578 units sold in October 2024.Similarly, two-wheeler sales surged 52 per cent year-on-year to 31,49,846 units in October as against 20,75,578 units in the same month last year."Overall retail sales grew robustly as both passenger vehicles and two-wheelers achieved lifetime highs, signalling renewed consumer confidence and strong economic undercurrents. After an almost quiet September for the first 21 days due to the GST 2.0 transition, October witnessed a swift rebound -- almost like a hurdle race where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels," Vigneshwar said.
Three-wheeler retails grew 5 per cent year-on-year to 1,29,517 units in October, while commercial vehicle sales posted an 18 per cent growth over the same period last month."The outlook for India's auto retail over the next three months remains decisively positive, backed by the continued impact of GST 2.0, steady rural income, and seasonal demand from weddings and harvests," FADA stated.Festive spillover bookings, better stock availability, and new model launches are expected to sustain retail momentum, supported by year-end offers and new-year registrations, it added.
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