New Delhi: Passenger vehicle sales in India surged 35 per cent year-on-year during the nine-day Navratri period this year, driving overall automobile registrations in September up by 6 per cent, according to data released by the Federation of Automobile Dealers Associations (FADA) on Tuesday.
Retail momentum, which had remained subdued for most of the month, picked up sharply after the rollout of revised GST rates on September 22, coinciding with the start of Navratri.
During the festive period, passenger vehicle sales reached 2,17,744 units, compared to 1,61,443 units in the same period last year. This surge helped the segment close September with 2,99,369 units, a modest 6 per cent growth from 2,82,945 units in September 2024.
“September 2025 was an exceptionally unique month for India’s automobile retail industry,” said FADA Vice President Sai Giridhar. “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.”
He added that overall retail sales grew 5 per cent year-on-year, with all major segments except three-wheelers and construction equipment registering gains.
FADA said dealerships witnessed record-breaking footfalls and deliveries during Navratri. The reduction in GST rates, coupled with festive enthusiasm, renewed customer interest, and increased bookings, though the short number of billing days limited the full effect of the rebound.
According to the association, the strong end to September has set the stage for robust sales momentum leading into Deepawali, the culmination of the ongoing 42-day festive cycle.
The two-wheeler segment also recorded significant gains. Retail sales in September rose 7 per cent to 12,87,735 units, up from 12,08,996 units a year earlier. During Navratri, two-wheeler sales grew 36 per cent to 8,35,364 units from 6,14,460 units last year. Improved affordability, festive offers, and pent-up demand contributed to the strong growth, FADA noted.
Three-wheeler sales, however, declined 7 per cent in September to 98,866 units compared to 1,06,534 units last year. Despite this, the Navratri period brought some relief for the category, with retail sales rising 25 per cent year-on-year to 46,204 units.
Commercial vehicle sales registered a 3 per cent increase last month, reaching 72,124 units compared to 70,254 units in September 2024. During Navratri, the segment recorded a 15 per cent jump to 33,856 units. Tractor sales followed suit, climbing 4 per cent in September to 64,785 units, with Navratri deliveries up 19 per cent to 21,604 units.
Overall vehicle retail sales across segments stood at 18,27,337 units in September, marking a 5 per cent increase from 17,36,760 units in the same month last year. Cumulative sales during the Navratri period rose sharply by 34 per cent, reaching 11,56,935 units compared to 8,63,327 units a year ago.
FADA stated that India is “standing at the cusp of its most spectacular 42-day festive season in history,” as the GST 2.0 rate cuts have significantly enhanced affordability and confidence across income groups.
The association attributed the positive outlook to a confluence of favourable conditions—above-normal monsoon rains, a strong Kharif harvest, and stable policy rates—which have boosted both rural and urban purchasing power.
“This unique alignment of economic, climatic, and policy factors is set to propel sentiment to record levels,” FADA said, adding that the upcoming Dhanteras and Deepawali are likely to mark “a celebration not just of light, but of renewed mobility aspirations across India.”
The organisation, which represents over 15,000 automobile dealerships operating more than 30,000 outlets, said affordable post-GST pricing, aggressive OEM offers, and easy finance availability have attracted first-time buyers while encouraging existing customers to opt for premium variants. “If the logistics and transport ecosystem performs seamlessly, this could well be the best festive retail season India has ever experienced,” FADA said.
With the festive euphoria set to continue through October, the dealers’ body forecasted a highly optimistic outlook for the month, driven by economic resilience and the transformational impact of GST 2.0 — marking what it called a “golden phase for Indian auto retail”.