GST reforms, Navratri drive 5.8% surge in passenger vehicle sales: Fada

Driven by the GST 2.0 reforms and Navratri festivities that coincided with its implementation during the latter half of September, retail sales for passenger vehicles posted a 5.8 per cent rise to 2,99,369 units, according to data shared by the Federation of Automobile Dealers Associations (Fada) on Tuesday.

Two-wheelers, tractors, and commercial vehicles were also up by 6.5 per cent, 3.6 per cent, and 2.6 per cent, respectively, while three-wheelers and construction equipment recorded a decline of 7.2 per cent and 19 per cent. Overall automobile retail sales were up 5.2 per cent compared to the same month in 2024.

"For the first time ever, dealerships across the nation witnessed record-breaking footfalls and deliveries during Navratri, with overall retails surging by 34 per cent YoY — a historic high during any festive season," said Sai Giridhar, vice president, FADA.. Approximately, 1.15 million units were sold during the nine days since Navratri, versus 8,63,000. Powered by affordability improvements, festive offers, and pent-up demand, in two-wheelers was up by 36 per cent, cars by 35 per cent, and commercial vehicles by 15 per cent during the period.

“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 Sai Giridhar, vice-president, Fada.

Passenger vehicle sales rise

Among passenger vehicle manufacturers, Maruti Suzuki posted a 7 per cent rise to 1,23,242 units, Tata Motors around 26 per cent to 41,151 units, and Mahindra & Mahindra around 5 per cent to 37,659 units. Hyundai Motor India, however, recorded an 8 per cent dip in September sales to 35,812 units.

The reduction in GST rates, coupled with festive demand, led to renewed enquiries and bookings, though limited billing days restricted the full potential of the rebound. Dealers used this period to replenish inventory, leading to stock levels in the passenger vehicle segment rising to about 60 days, reflecting festive preparedness ahead of October’s peak season.

“For the first time ever, dealerships across the nation witnessed record-breaking footfalls and deliveries, with overall retails surging by 34 per cent year-on-year — a historic high during any festive season,” said Giridhar.

Powered by affordability improvements, festive offers, and pent-up demand, footfall in two-wheelers rose by 36 per cent, cars by 35 per cent, and commercial vehicles by 15 per cent, he added.

Two-wheelers lead volume growth

In two-wheelers, sales stood at 1.29 million against 1.21 million in September 2024, up by 6.5 per cent. Market leader Hero MotoCorp posted a 19 per cent rise to 3,23,268 units. Honda Motorcycle and Scooter India saw a drop in sales to 3,23,614 units from 3,34,860 units, while TVS Motor recorded sales of 2,46,064 units, up from 2,22,029 units.

Fada outlook: A festive-led growth phase

Fada said the 42-day festive season, supported by GST 2.0 rate cuts that have transformed affordability and consumer confidence, could lead to an unprecedented growth phase.

“The combination of above-normal monsoon rains, a strong kharif harvest, and stable policy rates has boosted both rural and urban purchasing power,” the association said.

“This unique alignment of favourable economic, climatic, and policy factors is set to propel sentiment to record levels, turning this Dhanteras and Deepawali into a celebration not just of light, but of renewed mobility aspirations across India,” Giridhar added.