Passenger vehicle retails surge 35% in Navratri period; help sales grow 6% in September

New Delhi: Passenger vehicle retail sales shot up 35 per cent year-on-year during the nine-day Navratri period this year, helping the overall registrations last month grow 6 per cent, as offtakes remained muted in the first 21 days of the month and only took off after the roll-out of new GST rates on September 22, dealer' body FADA said on Tuesday.

Overall passenger vehicle retails in the auspicious period stood at 2,17,744 units as compared with 1,61,443 units in the Navratri period last year.

The bumper sale led to the passenger vehicle retail sales rise to 2,99,369 units in September, a modest growth of 6 per cent as against 2,82,945 units in the same month last year, as customers eyeing price cuts after new GST rate roll-out post September 22, postponed buys in the first half of the month.

"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," FADA Vice President Sai Giridhar said in a statement.

As a result, the month ended with an overall 5 per cent year on year (YoY) growth, with all segments -- except three-wheelers and construction equipment --showing positive momentum, he added.

The Navratri period witnessed record-breaking footfalls at dealerships and subsequent deliveries, he noted.

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, the Federation of Automobile Dealers Associations (FADA) 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, it added.

Two-wheeler retail sales last month stood at 12,87,735 units, an increase of 7 per cent year-on-year against 12,08,996 units in September 2024. In the Navratri period, sales grew 36 per cent to 8,35,364 units as compared with 6,14,460 units in the same period last year.

Two-wheeler retails were powered by affordability improvements, festive offers, and pent-up demand finally translating into retail joy, FADA stated.

Three-wheeler retail sales last month stood at 98,866 units, a dip of 7 per cent as compared with 1,06,534 units in September last year. Navratri period saw retails of 46,204 units, a jump of 25 per cent as against 37,097 units in the year-ago period.

Commercial vehicle sales rose 3 per cent to 72,124 units last month as against 70,254 units in the same month last year. The segment sales during the Navratri period saw a jump of 15 per cent year-on-year to 33,856 units.

Tractor retail sales grew 4 per cent annually to 64,785 units in September. Navratri period witnessed a 19 per cent jump in retails at 21,604 units as against 18,203 units in the year-ago period.

Overall sales last month, across segments, stood at 18,27,337 units, an increase of 5 per cent against 17,36,760 units in September 2024.

Likewise, overall Navratri sales rose 34 per cent to 11,56,935 units as against 8,63,327 units last year.

FADA noted that India stands at the cusp of what promises to be its most spectacular 42-day festive season in history.

With GST 2.0 rate cuts transforming affordability and confidence across every income segment, the nation's auto retail sector has entered an unprecedented growth phase, it added.

The combination of above-normal monsoon rains, a strong kharif harvest, and stable policy rates have boosted both rural and urban purchasing power, it 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, it stated.

Affordable prices post-GST 2.0, coupled with aggressive OEM offers and easy finance availability, have drawn a new wave of first-time buyers into showrooms, even as upgraders opt for premium variants, it said.

If the logistics and transport ecosystem performs seamlessly, this could well be the best festive retail season India has ever experienced, with supply chains matching the nation's celebratory demand, FADA, which represents over 15,000 automobile dealerships having over 30,000 dealership outlets, stated.

Overall, the near-term outlook for October 2025 remains highly optimistic, powered by economic resilience, festive euphoria, and the transformational impact of GST 2.0 -- heralding a golden phase for Indian auto retail, it added.