Auto Sales Up 21% During Festive Season: FADA Two wheeler was +22 per cent up, passenger vehicles (PV) +23 per cent up, commercial vehicle (CV) +15 per cent up, during the period.
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The 42-day festive period (Dussehra–Diwali), saw an overall retail sales of +21 per cent year-on-year (YoY), an all time festive high. Incentives such as GST 2.0 created an alignment of policy reform, festive sentiment, and rural revival, according to data released by the Federation of Automobile Dealers Associations (FADA).
Two wheeler was +22 per cent up, passenger vehicles (PV) +23 per cent up, commercial vehicle (CV) +15 per cent up, during the period.
After an almost quiet September for the first 21 days due to the GST 2.0 transition, October witnessed a swift rebound — where pent-up demand led to festive sentiment and tax-cut excitement, propelling sales to historic levels.
FADA president C S Vigneshwar said,"The 42-day festive period of 2025 stands as a defining milestone for India's auto retail, delivering the highest-ever sales and growth across categories. Overall vehicle retails surged 21 per cent YoY, affirming the success of the government's transformative GST 2.0 reforms — a reform that truly embodies the spirit of Simpler Tax, Stronger Growth."
The introduction of GST 2.0 proved transformational — lowering small-car GST rates made vehicle ownership more attainable, especially for the cost-sensitive first time buyer. Rural India became the true growth engine — with favourable monsoons, higher farm incomes, and government infrastructure push driving purchasing power. Rural PV sales grew over three times faster than urban, while rural 2W growth nearly doubled urban rates, marking a structural shift in the demand map of India's auto sector.
"This festive season was unique — Dussehra and Diwali falling in the same month coincided perfectly with the rollout of the new GST framework. Together, they ignited demand across Bharat's heartlands. Dealers nationwide reported record enquiries, higher conversions, and a palpable sense of optimism as customers advanced their buying decisions to benefit from reduced GST rates and attractive festive schemes," the president added.
The near-term outlook is supported by a confluence of encouraging macro and policy factors. The GST 2.0 reforms hailed as a cornerstone of the government's "Simpler Tax, Stronger Growth" and "Viksit Bharat by 2047" vision — continue to drive affordability, especially in the mass and entry-level segments. Strong rural cash flows post-harvest, marriage season demand, and improved stock availability across categories are expected to sustain retail momentum. Upcoming new model launches, healthier financing conditions, and stable fuel prices further reinforce a supportive ecosystem for continued growth.
