FADA Reports Strong Auto Sales in September 2025, Credits GST 2.0 For Festive Boost

The Federation of Automobile Dealers Associations (FADA) has released its vehicle retail data for September 2025 and the Navratri period, highlighting a solid uptick in sales driven by the implementation of GST 2.0 reforms and festive demand. 

September Retail Performance

Overall vehicle retails in September 2025 rose by 5.22% year-on-year (YoY), totalling 18,27,337 units. 

The two-wheeler (2W) segment led with a 6.51% YoY increase to 12,87,735 units, followed by passenger vehicles (PV) at 5.80% YoY growth to 2,99,369 units. Tractors (Trac) and commercial vehicles (CV) also grew by 3.61% and 2.66% YoY, respectively. 

However, three-wheelers (3W) declined by 7.20% to 98,866 units, and construction equipment (CE) fell sharply by 19.00% to 4,458 units, attributed to heavy rains disrupting activities.

Navratri 2025: 'Bachat Utsav' with Record Sales

Dubbed 'Bachat Utsav' by FADA, Navratri 2025 witnessed an unprecedented 34.01% YoY retail growth, reaching 11,56,935 units, the highest ever for any festive period. 

The 2W segment surged 35.95% YoY to 8,35,364 units, powered by affordability gains and pent-up demand. PV retails jumped 34.87% to 2,17,744 units, driven by upgrades and new buyers. CV grew 14.84%, 3W by 24.55%, and Trac by 18.68%, while CE dipped 18.16% due to weather woes.

Looking ahead, FADA anticipates October 2025 to deliver all-time high sales during Dhanteras and Diwali. Factors like above-normal monsoons, strong kharif harvests, stable RBI rates, and GST 2.0 are boosting purchasing power.

Market Insights

YTD FY'26 retails grew 3.42% to 1,23,48,306 units. Fuel-wise, petrol/ethanol dominated 2W (91.71%) and PV (48.19%), while EVs held 61.74% in 3W. Rural demand strengthened, with Trac at 81.1% rural share.

Among OEMs, Hero MotoCorp led 2W with 25.10% market share, Maruti Suzuki topped PV at 41.17%, and Tata Motors dominated CV at 33.04%.

FADA, representing over 15,000 dealerships and employing 5 million people, continues to advocate for the sector's growth amidst policy reforms.

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