India’s automobile industry recorded its highest-ever festive season sales during the Navratri period from 22 to 30 September, growing 34 per cent year-on-year (YoY), according to data released by the Federation of Automobile Dealers Associations (FADA) on Tuesday.

Passenger vehicle sales surged 34.8 per cent, while two-wheeler sales rose 36 per cent, fuelled by the implementation of GST 2.0 reforms and renewed consumer sentiment. Overall, automobile sales in September grew 5.22 per cent to 1.83 million units, compared with 1.74 million units in the same month last year.

FADA said that while sales were subdued until 21 September, demand picked up sharply in the final week following the GST reforms. The strong momentum built during Navratri is expected to continue through to Deepawali, with dealerships reporting a rise in enquiries and bookings across two-wheelers, passenger vehicles, and commercial fleets.

“If the logistics and transportation systems continue to function smoothly, this could turn out to be the best festive retail season India has ever witnessed, with supply chains keeping pace with celebratory demand,” the association said in its report.

Two-wheeler sales increased by 6.1 per cent to 1.29 million units in September, up from 1.21 million in the previous year. Passenger vehicle sales rose 5.81 per cent to 299,369 units, compared with 282,945 units a year earlier.

FADA attributed the surge in sales to the combination of GST rate cuts and festive buying, which revived consumer activity, though limited billing days prevented the market from reaching its full potential.

“Navratri 2025 will go down as one of the most memorable chapters in India’s automobile retail journey — a true Bachat Utsav triggered by the visionary GST 2.0 reform introduced by Prime Minister Narendra Modi,” said FADA Vice President Sai Giridhar.

Dealers also used the period to replenish inventory, with passenger vehicle stock levels now estimated at around 60 days. However, not all segments recorded growth — sales of three-wheelers fell 7.2 per cent, while commercial equipment vehicles dropped 19 per cent during September.

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