The passenger vehicles (PVs) segment clocked record sales during the festive period, starting from Navratri till Diwali. The leading carmakers, including Maruti Suzuki, Hyundai, and Mahindra & Mahindra, showed impressive numbers. Demand began picking up particularly towards the end of September, following the announcement of the GST 2 reforms.
Maruti Suzuki made around 51,000 deliveries – its highest ever on Dhanteras. Last year, the company delivered 41,500 units, and this year it crossed the 50,000 mark. Commenting on the highlights of sales around the festive period, Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki said: “This year, many customers, because of the GST 2.0 magic, are enthusiastically coming to buy vehicles. Since the day we announced reduced prices, we have received 4.5 lakh bookings, of which one lakh is for a small car. Retail is 3.25 lakh. It has broken all records for Maruti Suzuki, with growth of more than 50 per cent over the same period last year.”
Since the day we announced reduced prices, we have received 4.5 lakh bookings, of which one lakh is for a small carPartho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki
In its report, the Society of Indian Automobile Manufacturers (SIAM) on the growth outlook for H2 (October 2025-March 2026) stated that the Indian automobile industry enters the second half of FY2025-26 with renewed cheer, supported by strong festive season momentum, stable macroeconomic conditions, and GST 2.0 reforms that have improved overall affordability and consumer sentiment. The extended festive and wedding season is expected to sustain the growth momentum through Q3.
Other factors
The Kharif harvest is expected to be broadly healthy, supported by an above-normal monsoon. However, flooding in parts of the North, West, and Eastern regions temporarily impacted certain crops and logistics. Despite these disruptions, overall agricultural output and rural sentiment remain stable, which is likely to support rural consumption and mobility demand in H2. The rollout of GST 2.0 reforms, coupled with earlier RBI rate rationalisation measures and income tax relief to common taxpayers, is expected to sustain buying interest across all vehicle segments through the festive and post-festive months.
“The GST 2.0 reform is a landmark decision of the Government of India, which, apart from catapulting the Indian auto industry to the next level, will bring vibrancy to the entire economy, as this industry is closely intertwined with strong forward and backward linkages. Despite the new GST rates coming into effect from 22 September – ie, only for nine days of the month – Passenger Vehicles, Two-Wheelers, and Three-Wheelers have already posted their highest ever September sales. Looking ahead, the outlook for the sector remains encouraging,” explained Shailesh Chandra, President, SIAM.
Hyundai Motor India Limited (HMIL) clocked the second-highest sales during the festive period. “We are witnessing strong customer demand. The positive momentum is driven by the festive spirit, a buoyant market environment, and the encouraging impact of GST 2.0 reforms,” said Tarun Garg, Whole-time Director & COO, HMIL.
According to Sai Giridhar, VP, Federation of Automobile Dealers Associations (FADA): “September 2025 was an exceptionally unique month for India’s automobile retail industry. The first three weeks were largely muted, with customers holding back in anticipation of the GST 2.0 reforms. However, the dynamics changed dramatically in the final week as the Navratri festivities coincided with the implementation of lower GST rates, reviving customer sentiment and accelerating deliveries across most vehicle categories. As a result, the month ended with an overall 5.22 per cent year-on-year growth across all segments. Navratri 2025 will go down as one of the most memorable chapters in India’s automobile retail journey – a true ‘Bachat Utsav’ unleashed by Prime Minister Narendra Modi. For the first time, dealerships across the nation witnessed record-breaking footfall and deliveries, with overall retail sales surging by 34 per cent year-on-year,” added Giridhar. “In September, we achieved SUV sales of 56,233 units — a growth of 10 per cent — and total vehicle sales of 100,298 units, a 16 per cent growth compared to the same month last year,” said Nalinikanth Gollagunta, CEO, Automotive Division, M&M Ltd.
Automakers and the industry are betting big on the festive cheer and the confidence it has ignited, which they expect will carry forward with even greater strength into Dhanteras, Deepawali, and beyond.