The latest sales numbers speak for themselves, as far as festive auto volumes are concerned. According to the latest data released by the Federation of Automobile Dealers Associations (FADA), India’s automotive market saw its best festive season yet.
Overall vehicle sales jumped 34 per cent during Navratri 2025, marking a historic high for any festive period.
"For the first time ever, dealerships across the nation witnessed record-breaking footfalls and deliveries, with overall retails surging by 34 per cent YoY—a historic high during any festive season," said FADA Vice President Sai Giridhar.
Slow September, till it wasn’t
September started quite slow as people waited for GST 2.0, the new tax reform that promised lower prices on vehicles, to come into effect on the 22nd of the month.
For the first three weeks of the month, customers held back from buying, expecting better deals. Then came September 22, with new GST rates alongside Navratri celebrations.
Two-wheelers (motorcycles and scooters) saw the biggest surge, a 36 per cent jump during Navratri. Passenger cars weren’t far behind with 35 per cent growth. Even commercial vehicles like trucks and buses saw sales spike by 15 per cent, FADA data revealed.
Record dealership footfalls
Dealerships across India also reported record-breaking footfalls, aided by a combination of lower taxes, festive offers, and pent-up demand.
"September 2025 was an exceptionally unique month for India’s automobile retail industry. The first three weeks were largely muted, with customers holding back in anticipation of the GST 2.0 reforms. However, the dynamics changed dramatically in the final week as Navratri festivities coincided with the implementation of lower GST rates, reviving customer sentiment and accelerating deliveries across most vehicle categories. As a result, the month ended with an overall 5.22 per cent YoY growth, with all segments—except three-wheelers and construction equipment—showing positive momentum," noted Giridhar.
The only segments that struggled were three-wheelers in September (down 7.2 per cent) and construction equipment (down 19 per cent due to heavy rains affecting building work). But even three-wheelers bounced back during Navratri with 24.5 per cent growth, as per FADA.
Looking ahead, FADA noted that the industry expects this momentum to continue through Dhanteras and Deepavali (Diwali).
"Overall, the near-term outlook for October 2025 remains highly optimistic, powered by economic resilience, festive euphoria, and the transformational impact of GST 2.0," FADA stated.
If logistics and supply chains perform smoothly, India is likely to witness its "best-ever festive retail season", FADA pointed out in its October outlook.
