
The revised GST structure along with abolition of cess which came into effect from 22 September, boosted consumer sentiments, leading to a fruitful festive season for the auto industry.
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The revised GST structure along with abolition of cess which came into effect from 22 September, boosted consumer sentiments, leading to a fruitful festive season for the auto industry.
India’s automotive sector witnessed robust momentum in October 2025, supported by festive demand and the positive impact of the recent GST rate reduction. According to data released by the Society of Indian Automobile Manufacturers (SIAM), total domestic sales across passenger vehicles (PVs), three-wheelers and two-wheelers grew steadily, even as production and certain sub-segments faced mixed results.
Overall production for October 2025 stood at 28,01,412 units marking a small decline of 2.83% YoY as compared to 28,82,996 units produced during the same month last year. SIAM also highlighted that wholesales in October marked the highest-ever dispatches for the PV, two-wheeler and three-wheeler categories for the month. This suggests that while domestic sales increased, exports may have taken a fall.
Commenting on the month’s performance, SIAM Director General Rajesh Menon noted that the combined effect of festive demand and lower GST rates led to significant improvement in vehicle registrations, which in turn boosted wholesales. With strong consumer sentiment and improved dealer-level activity, the industry enters the final quarter of the year on a positive trajectory.
The Passenger Vehicle segment led the industry’s uptrend with 4,60,739 units sold, marking a 17.2% growth over October 2024. The surge was fuelled primarily by heightened festive activity and improved consumer sentiment following GST rate reductions effective from late September.
Within PVs, passenger cars, utility vehicles and vans all contributed to the uplift. Although brand-level data for BMW, Mercedes, JLR and Volvo Auto was unavailable, and Tata Motors’ model-wise split was not provided, the category’s performance indicates broad-based market strength driven by new launches, aggressive discounting and enhanced availability of popular models. Utility vehicles remained the strongest sub-segment, reflecting sustained consumer preference for SUVs.
The Three-Wheeler segment recorded 81,288 domestic sales, achieving a 5.9% year-on-year growth. Passenger carriers accounted for the majority of volumes, growing 7.6% over the previous year to reach 67,314 units.
Goods carriers saw marginal growth at 2.8%, highlighting stable demand from last-mile logistics operators. However, the electric three-wheeler sub-categories saw declines: E-rickshaw sales dropped 27.2%, while E-carts dipped 3.4%, signalling possible market correction following previous periods of rapid expansion or the impact of transitional regulatory changes.
Two-Wheelers, the largest automotive category by volume, closed the month with 22,10,727 units, growing 2.1% over October 2024. The segment’s performance was mixed across sub-categories.
Scooters were the primary growth driver, rising 14.3% to 8,24,003 units, supported by stronger urban demand and a preference for convenient personal mobility during the festive season. Mopeds recorded a modest decline of 2.1%. Motorcycles, however, registered a 4% contraction, dropping to 13,35,468 units. This decline may reflect subdued rural sentiment or a transitional shift in buying patterns within the commuter bike segment.
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