Passenger vehicle sales jump 35% during Navratri: GST 2.0 fuels festive demand; auto retail sector set for record 42-day season

Passenger vehicle retail sales jumped 35 per cent year-on-year during this year’s nine-day Navratri period , according to the Federation of Automobile Dealers Associations ( FADA ). Overall vehicle registrations grew 6 per cent in September, as sales remained muted in the first three weeks before picking up following the implementation of new GST rates on September 22.

Passenger vehicle retails reached 2,17,744 units during Navratri , up from 1,61,443 units last year. For the full month, passenger vehicle sales rose to 2,99,369 units, a 6 per cent increase from 2,82,945 units in September 2024. Customers had delayed purchases in anticipation of lower GST rates.

“September 2025 was a unique month for India’s automobile retail industry . The first three weeks were largely quiet as customers waited for GST 2.0 reforms. But Navratri festivities coinciding with lower GST rates revived sentiment and accelerated deliveries across most vehicle categories,” said FADA Vice President Sai Giridhar.

Dealerships reported unprecedented footfall and deliveries during the festive period. FADA noted that while revised GST rates and festive demand spurred enquiries and bookings, limited billing days restricted full recovery potential. The organisation expects momentum to continue through Deepawali, promising a strong end to the 42-day festive season.

Segment-wise performance in September 2025

• Two-wheelers: Retail sales reached 12,87,735 units, up 7 per cent year-on-year. Navratri sales surged 36 per cent to 8,35,364 units.
• Three-wheelers: Sales fell 7 per cent to 98,866 units, though Navratri period sales rose 25 per cent to 46,204 units.
• Commercial vehicles: Increased 3 per cent to 72,124 units; Navratri sales up 15 per cent to 33,856 units.
• Tractors: Grew 4 per cent to 64,785 units, with Navratri sales up 19 per cent to 21,604 units.

Overall retail sales across segments reached 18,27,337 units, a 5 per cent increase from 17,36,760 units last year. Navratri sales across all segments rose 34 per cent to 11,56,935 units.

FADA highlighted that GST 2.0 rate reductions, coupled with festive offers, post-monsoon income gains, and accessible financing, have boosted affordability and attracted first-time buyers. Both rural and urban markets contributed to the surge, with premium variants seeing strong demand from existing customers.

Representing over 15,000 dealerships and 30,000 outlets nationwide, FADA suggested that India could witness its best-ever festive auto retail season if logistics and transport systems function efficiently. The outlook for October remains positive, supported by economic resilience, festive enthusiasm, and GST 2.0’s transformational impact.