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Informist, Tuesday, Oct. 7, 2025

 

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--FADA: Sept total vehicle retail sales 1.83 mln units, up 5.2% on year
--FADA: Sept passenger vehicle retail sales 299,369 units, up 5.8% on yr
--FADA: Sept 2-wheeler retail sales 1.29 mln units, up 6.5% on year
--FADA: Sept CV retail sales 72,124 units, up 2.7% on year
--FADA: Sept 3-wheeler retail sales 98,866 units, down 7.2% on year
--FADA: Sept tractors retail sales 64,785 units, up 3.6% on year
--FADA: First 21 days of Sept muted, saw demand surge after Sept 22
--FADA: 2-wheelers, PVs led Sept sales growth on affordability gains
--FADA: Dhanteras, Diwali expected to deliver peak festival sales
--FADA: India on track to witness best ever festival retail season
--FADA: Overall auto retail sales surged 34% YoY during Navratri
--FADA: Two-wheeler retail sales rose 36% YoY, PV 35% during Navratri
--FADA: Dealers' PV inventory up at 60 days in Sept ahead of festival season

 

NEW DELHI – Automobile retail sales in September grew in mid-single digits on year, with most of this growth coming in the final week of the month as customers who had held back their decision to purchase cars and two-wheelers rushed in to reap the benefits of lower goods and service tax and discounts, data from the Federation of Automobile Dealers Association showed Tuesday. Automobile retail sales surged 34% on year in the final week of the month--the festival period of Navratri--which is a record high for any festival season in the country, FADA said. 

 

"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," FADA Vice-President Sai Giridhar said in a press release.

 

Dealerships sold 1.83 million automobile units in September, up just over 5% on year but down nearly 7% on month. All segments reported a year-on-year growth in September, barring three-wheelers and construction vehicles. However, construction vehicles were the only segment to report a month-on-month growth in September, with the rest registering a contraction.  

Two-wheeler sales grew nearly 7% on year but fell over 6% on month to 1.29 million units in September. Retail sales of this segment grew 36% on year during the festival period of Navratri, driven by the tax cut, festival offers, and pent-up demand.

 

Passenger vehicle sales fell over 7% on month but grew nearly 6% on year to 299,369 units in September. During Navratri, retail sales of passenger vehicles surged 35% on year as discounts and tax cuts made these cars more affordable. Dealer stock of passenger vehicles rose to around 60 days by the end of the month to benefit from this renewed appetite for cars. 

 

"The reduction in GST rates, coupled with festive demand, led to renewed enquiries and bookings, although limited billing days restricted the full potential of the rebound," Giridhar said. "The momentum built in the closing days of September will carry forward into Deepawali, marking a promising end to the 42-days festive period," he added. 

 

Retail sales of commercial vehicles grew nearly 3% on year in September but fell around 5% on month to 72,124 units. Sales in the segment grew nearly 15% on year during Navratri. "... reflecting renewed confidence among operators as financing resumed and infrastructure optimism returned," Giridhar said. 

 

It was a disappointing month for three-wheelers, as retail sales fell 4% on month and over 7% on year to 98,866 units. This decline in sales was primarily driven by weakness in sales of electric passenger rickshaws. However, a revival in urban mobility demand drove sales growth of 25% on year during Navratri. 

 

Tractor sales grew almost 4% on year but tumbled nearly 24% on month to 64,785 units. Construction equipment sales fell 19% on year but grew nearly 21% on month to 4,458 units. During Navratri, the tractor sales grew nearly 19% on year but construction equipment sales fell 19% on year.

 

In the near term, FADA expects above normal monsoon, strong kharif harvest in addition to tax cut benefits, aggressive discounting by original equipment manufacturers, and easy financing schemes to boost customers' purchasing power. "Dhanteras & Deepawali to deliver peak festive sales with affordability at its best. If logistics & supply chains perform smoothly, India will witness its best-ever festive retail season," FADA said.  

 

Overall, dealerships sold 1.16 million automobile units during the Navratri period, 34% more than they did during the Navratri in 2024.

 

APR-SEPT

Dealerships sold 12.35 million automobile units in this financial year so far, registering a growth rate of over 3% on year as all segments barring construction equipment registered a growth. Tractors remained an outperformer during this period as sales growth hit nearly 11% on year to 448,987 units.

 

Two-wheeler sales during Apr-Sept stood at 8.84 million units, up 3% from the corresponding period a year ago. Passenger vehicle sales during this period grew nearly 4% on year to almost 2 million units. Three-wheeler sales grew nearly 4% on year to 618,225 units and commercial vehicles grew almost 3% on year to 460,475 units.   End

 

Reported by Anand JC

Edited by Akul Nishant Akhoury

 

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