Impact of GST cut and festivals visible! Vehicles sold heavily in October, auto sector made record

October 2025 proved to be a very special month for India’s auto sector. This month, record-breaking sales were seen in all segments of passenger vehicles, two-wheelers and three-wheelers. This happened after a long time when such huge growth was recorded simultaneously in all three categories. The biggest reason for this was the GST reduction, along with this, festivals like Diwali, Navratri and Dhanteras also strengthened the market demand, due to which there was a sharp increase in both supply and retail.

Passenger vehicle segment broke all records

• According to SIAM data, the passenger vehicle segment showed excellent performance in October 2025. This month PV sales increased by 17% to 4,60,739 units, whereas last year this figure was 3,93,238 units. The increasing popularity of SUVs, frequent launches of new cars and easy EMI options further accelerated this growth. Demand for cars remained strong in both urban and rural markets and for the first time such a large number of supplies were sent to dealers.

Scooters shine in Two Wheelers

• Better growth was also recorded in the two-wheeler segment. Total two-wheeler supply increased by 2% to 22,10,727 units. The biggest contribution in this was from scooters, whose sales increased by 14% to 8,24,003 units. This is a growth of more than one lakh units, which indicates that the demand for scooters is continuously increasing in urban areas. Scooters with easy to operate, feature equipped and better mileage are becoming increasingly popular among youth and women.

Motorcycle segment weakened

This time there was a slight decline in the motorcycle segment. Its sales declined by 4% to 13,35,468 units. This shortage indicates slow demand especially in rural areas. However, the two, three and electric three-wheeler market strengthened the industry. Sales of this segment increased by 6% to 81,288 units.

SIAM statement

• According to SIAM Director General Rajesh Menon, October 2025 has been the best month in terms of supply in the history of India’s auto industry. He said there were two main reasons for this surge—first, the festive season which accelerated purchasing, and second, the reduction in GST rates, which brought down the prices of vehicles and made it easier for customers to buy.

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