FADA Sales: GST 2.0, Navratri Sees Auto Sector Post 5 Per Cent Growth In September 2025

The GST 2.0 rate revisions and the Navratri festive period helped push the Indian auto industry to report a 5.22 per cent cumulative growth in September 2025, FADA reported. Strong demand in late September helped boost overall industry sales, with two-wheeler sales and passenger vehicles posting sales growth of 6.5 per cent and 5.8 per cent. Sales in the tractor and CV segments too posted a year-on-year growth, though sales of construction equipment and three-wheelers witnessed a downturn.

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Commenting on the sales performance in the month, FADA Vice President, Sai Giridhar, said, “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 Navratri festivities coincided with the implementation of lower GST rates, reviving customer sentiment and accelerating deliveries across most vehicle categories.”

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While year-on-year painted a rosier picture, sales were down compared to August 2025 across the board - except for construction equipment. Sales of two-wheelers for the month stood at 12,87,735 units - up from 12,08,996 units last year but down compared to 13,73,675 units in August 2025. Similarly, passenger vehicle sales were up from 2,82,945 units last year to 2,99,369 units in September 2025 but remained below the 3,23,256 units sold in August 2025.

Construction equipment, which reported a 19 per cent sales drop year-on-year, reported a 20.36 per cent growth over August 2025.

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Shifting focus to the festive 9-day Navratri period, FADA reported a 34 per cent year-on-year growth in sales on the back of pent-up demand and price reductions on the back of the GST 2.0 reforms.

“For the first time ever, dealerships across the nation witnessed record-breaking

footfalls and deliveries, with overall retail surging by 34 per cent YoY — a historic high during any festive season. Every major segment contributed to this unprecedented momentum. 2W grew by 36 per cent, powered by affordability improvements, festive offers, and pent-up demand, finally translating into retail joy. PV clocked a robust 34.8 per cent growth, as a wave of new customers entered showrooms and existing ones upgraded to higher variants, taking advantage of lower GST and irresistible festive schemes,” commented Giridhar.

Also read: Tata Motors Snatches Second Place In Passenger Vehicle Retails In September 2025

Two-wheeler sales in the Navratri period in 2025 stood at 8,35,364 units - up from 6,14,460 units while passenger vehicle sales climbed from 1,51,443 units last year to 2,17,744 units in the nine days.

FADA said it expected the strong buying sentiment to continue into October on the back of a good monsoon, strong harvest season and the GST 2.0 rate cuts in addition to the festive season. The apex dealer boxy said it expects Dhanteras and Diwali to report new highs in vehicle retail.