India’s automobile sector reported robust growth across all major segments in September 2025, driven by festive demand and the early impact of GST 2.0 reforms, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday.
Passenger vehicle sales stood at 3,72,458 units in September 2025, up 4.4% from 3,56,752 units sold in the same month last year.
Two-wheeler sales recorded 21,60,889 units, marking a 6.7% rise from 20,25,993 units in September 2024, supported by higher rural demand and improved affordability.
Three-wheeler sales grew 5.5%, reaching 84,077 units compared to 79,683 units last year.
SIAM highlighted that the industry’s performance reflects positive sentiment ahead of the peak festive season and the initial benefits of recent tax reforms aimed at boosting consumption.
“This year, the festive season started earlier than last year, beginning from September 22 with Navratri, which helped stimulate retail activity during the latter part of Q2 itself,” SIAM noted. The extended festive and wedding season is expected to sustain growth momentum through Q3, reinforcing positive consumer sentiment across all vehicle categories.
SIAM also mentioned the role of rural demand: “The Kharif harvest is expected to be broadly healthy, supported by an above-normal monsoon. While flooding in parts of North, West, and Eastern regions affected certain crops and logistics temporarily, overall agricultural output and rural sentiment remain stable, supporting rural consumption and mobility demand in H2.”
The rollout of GST 2.0 reforms, along with earlier RBI rate rationalization measures and Income Tax relief for common taxpayers, is expected to maintain buying interest across all vehicle segments during the festive and post-festive months.
“While the industry remains watchful of geopolitical developments, the overall outlook for the rest of the current financial year remains encouraging, with the sector expected to close the fiscal year on a positive growth trajectory,” SIAM added.
-ANI