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.