New Delhi | October 15, 2025 

India’s automobile industry witnessed a strong growth trend in September 2025, with sales rising across all major vehicle segments, driven by the festive season and the early effects of GST 2.0 reforms, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Wednesday.

Passenger vehicles recorded a total of 3,72,458 units sold in September, reflecting a 4.4% increase compared to 3,56,752 units sold in the same month last year. The growth in this segment is being attributed to higher consumer confidence, rising disposable incomes, and a surge in retail activity ahead of the festive period.

The two-wheeler segment also posted robust numbers, with 21,60,889 units sold, marking a 6.7% rise from 20,25,993 units in September 2024. Analysts noted that stronger rural demand, improved affordability, and timely harvests contributed significantly to this increase. Two-wheelers continue to be the preferred choice for first-time buyers and rural consumers, further supporting sectoral growth.

Three-wheeler sales expanded by 5.5%, reaching 84,077 units compared to 79,683 units in the same month last year. This growth reflects steady demand in the commercial mobility segment, particularly for small goods transport and passenger services in semi-urban and urban areas.

SIAM highlighted that the industry’s performance underscores a positive sentiment among consumers ahead of the peak festive season. “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,” the report stated. The extended festive and wedding period is expected to sustain momentum into the third quarter, benefiting sales across all vehicle categories.

The body also pointed out the role of rural demand in supporting overall growth. A broadly healthy Kharif harvest, aided by an above-normal monsoon, has contributed to strong rural consumption. Although flooding in some parts of the North, West, and Eastern regions temporarily affected crops and logistics, overall agricultural output remains stable, sustaining mobility demand in rural areas.

The rollout of GST 2.0 reforms, combined with earlier measures such as RBI rate rationalization and Income Tax relief for common taxpayers, has created a favorable environment for buyers. These initiatives have enhanced affordability and encouraged spending on automobiles, particularly during the festive months.

While the industry remains attentive to geopolitical developments and external economic factors, SIAM expressed confidence in the overall outlook for the current financial year, noting that the sector is expected to close the fiscal year on a positive growth trajectory. The strong September performance, boosted by both consumer sentiment and policy support, sets a promising tone for the remainder of 2025, reflecting the resilience and adaptability of India’s automobile market.

With demand showing strength across passenger vehicles, two-wheelers, and three-wheelers, the industry appears poised to maintain its growth momentum through the festive and post-festive months, ensuring that both manufacturers and consumers benefit from a buoyant market environment.

 India’s Auto Sales Rise Strongly in September 2025

India’s automobile industry saw significant growth in September 2025, driven by festive demand and early impacts of GST 2.0 reforms, according to SIAM. Passenger vehicle sales rose 4.4% to 3,72,458 units, while two-wheelers grew 6.7% to 21,60,889 units, supported by rural demand and improved affordability. Three-wheelers also increased by 5.5% to 84,077 units. Analysts attribute the growth to early festive shopping, a healthy Kharif harvest, and supportive government measures like tax relief and RBI rate rationalization. With strong momentum across all segments, the sector is expected to maintain positive growth through the festive and post-festive months.