India’s Auto Sales Surge 35% During Navratri; September Sees 5-6% Growth, Says FADA
India’s auto sales soared 35% during Navratri 2025, with two-wheeler and car sales rising sharply after GST rate cuts. FADA expects festive demand to continue through Diwali.
Auto sales in India surged during Navratri 2025 as buyers took advantage of new GST rates and festive offers.
India’s automobile industry witnessed a sharp surge in sales during the Navratri 2025 period, as car and two-wheeler buyers aligned their purchases with the new GST rate cuts that came into effect on September 22, coinciding with the start of the 10-day festival.
🚗 Auto Sales Jump 35% During Navratri
The Federation of Automobile Dealers Associations (FADA) reported that, between September 22 and October 2, retail two-wheeler sales increased by 34.95% as compared to the previous year, the number of units sold being 8,35,364, while the sale of cars increased by 34.87% to 2,17,744 units.
Two-wheeler registrations, for September 2025, rose by 6.51% to 12,87,735, while passenger vehicle (car) sales increased by 5.80% to 2,99,369 units, a clear indication of the intense festive demand adversely impacting the market.
💰 New GST Rates Drive Festive Demand
The surge was largely driven by India’s revised GST structure, effective September 22, which reduced tax rates on several categories of goods, including automobiles. The government rationalized the previous four GST slabs (5%, 12%, 18%, and 28%) into two simplified slabs — 5% and 18%, while introducing a 40% rate for luxury and sin goods and removing the compensation cess.
Under the new structure, small cars are now taxed at 18%, while larger vehicles fall under the 40% GST bracket.
“The Navratri sales reminded us what the right policy at the right time can do for a nation’s sentiment,”
said FADA Vice President Sai Giridhar.
“The GST reduction, combined with festive cheer, led to a spike in inquiries and bookings, though limited billing days capped the full potential.”
🏬 Dealers Stock Up Ahead of Diwali
Dealers across the country used the Navratri window to replenish inventory and are now reportedly stocked for up to 60 days, anticipating heavy demand around Dhanteras and Diwali (October 20–21).
Giridhar added that the momentum from Navratri is expected to carry forward into Diwali, with smooth logistics and transport operations likely to make this festive season one of the best India has ever seen.
📊 Key Highlights
Navratri Period (Sept 22–Oct 2):
- Two-wheeler sales up 34.95% YoY
- Car sales up 34.87% YoY
- Full Month (Sept 2025):
- Two-wheeler sales up 6.51%
- Passenger vehicle sales up 5.80%
- New GST Rates: 5%, 18%, and 40% (luxury goods)
Upcoming Festive Events: Dhanteras and Diwali 2025
