GST reforms, festive boost drive India's auto sales to record high in Oct: Data

New Delhi, Nov 7 (IANS) GST 2.0 reforms, 42-day festivities and rural resurgence came together to deliver record-breaking results for the automobile sector in the month of October at 4.02 million units, up 40.5 per cent year-on-year from 2.87 million in the same month last year, data from the Federation of Automobile Dealers Associations (FADA) showed on Friday.

While passenger vehicle (PV) sales came at 5.57 lakh units, an 11 per cent increase, two-wheelers recorded their highest-ever monthly sales at 31.5 lakh units, up 52 per cent on-year.

Commercial vehicles (CVs) recorded 17.7 per cent YoY growth, driven by rising freight activity, rural logistics, and infrastructure push, while tractor segment grew 14.2 per cent.

“October will be remembered as a landmark month for India’s auto retail. Overall retail sales grew by a robust 40.5 per cent YoY, as both passenger vehicles and two-wheelers achieved lifetime highs, signalling renewed consumer confidence and strong economic undercurrents,” said FADA President C.S. Vigneshwar.

After an almost quiet September for first 21 days due to the GST 2.0 transition, October witnessed a swift rebound — almost like a hurdle race where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels, he mentioned.

GST rate cuts, especially for entry-level 2W and small cars, spurred affordability and first-time buying.

Rural India became the growth engine, aided by strong monsoon, higher farm incomes and infrastructure spending. Dealers reported record enquiries and improved conversions; PV inventory corrected by 5–7 days, the data showed.

The introduction of GST 2.0 proved transformational as lowering small-car GST rates made vehicle ownership more attainable, especially for the cost-sensitive first-time buyer.

This affordability boost, timed perfectly with the festive season, turned sentiment into action. The standout story of the month was the rise of Bharat.

“The 42-day festive period of 2025 stands as a defining milestone for India’s auto retail, delivering the highest-ever sales and growth across categories. Overall vehicle retails surged 21 per cent YoY, affirming the success of the Government’s transformative GST 2.0 reforms — a reform that truly embodies the spirit of Simpler Tax, Stronger Growth,” said Vigneshwar.

--IANS

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