Passenger Vehicle Retail Sales Jump 35% During Navratri, Driving 6% Growth in September
NEW DELHI: Passenger vehicle retail sales surged 35% year-on-year during the nine-day Navratri period this year, boosting overall registrations in September by 6%, according to the Federation of Automobile Dealers Associations (FADA) on Tuesday. Sales were sluggish during the first 21 days of the month, picking up only after the rollout of new GST rates on September 22.
During the Navratri period, passenger vehicle retails reached 2,17,744 units, up from 1,61,443 units in the same period last year. This strong festive performance contributed to September’s total passenger vehicle retail sales of 2,99,369 units, a 6% increase over 2,82,945 units in September 2024, as buyers had postponed purchases earlier in the month awaiting GST-driven price reductions.
“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,” said FADA Vice President Sai Giridhar.
As a result, September ended with a 5% year-on-year growth across segments, except for three-wheelers and construction equipment. The Navratri period saw record footfalls at dealerships, translating into strong deliveries. FADA noted that the reduction in GST rates, combined with festive demand, sparked renewed enquiries and bookings, although limited billing days prevented the full potential of the rebound.
The positive momentum in late September is expected to continue into Deepawali, marking a promising end to the 42-day festive season.
Segment-wise Performance:
Two-wheelers: Retail sales rose 7% year-on-year to 12,87,735 units in September, compared with 12,08,996 units in September 2024. Navratri sales jumped 36% to 8,35,364 units from 6,14,460 units last year. Growth was driven by affordability improvements, festive offers, and pent-up demand.
Three-wheelers: Sales fell 7% to 98,866 units in September, down from 1,06,534 units last year. However, Navratri sales rose 25% to 46,204 units from 37,097 units.
Commercial vehicles: Retail sales grew 3% to 72,124 units versus 70,254 units in September 2024, with Navratri sales up 15% to 33,856 units.
Tractors: Sales increased 4% to 64,785 units in September, while Navratri sales rose 19% to 21,604 units from 18,203 units.
Overall, total retail sales across all segments reached 18,27,337 units in September, up 5% from 17,36,760 units last year. Navratri sales rose 34% to 11,56,935 units from 8,63,327 units in 2024.
FADA highlighted that India is entering what could be its most spectacular 42-day festive season. The GST 2.0 rate cuts have enhanced affordability and confidence across income segments, while above-normal monsoon rains, a strong kharif harvest, and stable policy rates have boosted both rural and urban purchasing power.
Affordable prices post-GST 2.0, coupled with aggressive OEM offers and easy financing, have attracted first-time buyers, while upgraders opt for premium models. If logistics and supply chains function smoothly, India could witness its best festive retail season ever, FADA said.
Looking ahead, the near-term outlook for October 2025 remains highly optimistic, fueled by economic resilience, festive demand, and the transformational impact of GST 2.0, signaling a golden phase for Indian auto retail.
