SIAM Data: GST 2.0, Festive demand lift auto sales volumes in October 2025

SIAM Data 2025: India’s automobile sector reported solid growth across major categories in October 2025, supported by festive-season buying and the impact of the recent GST rate reduction, according to data from the Society of Indian Automobile Manufacturers (SIAM).

Domestic passenger vehicle (PV) dispatches rose 17.2 per cent to 4,60,739 units, compared with 3,93,238 units in October last year. This was the highest-ever October performance for the segment, reflecting strong demand across entry-level and premium categories.

Two-wheeler sales were also higher, increasing 2.1 per cent to 22,10,727 units from 21,64,276 units in October 2024. Within the segment, scooters posted robust growth of 14.3 per cent with 8,24,003 units, while motorcycle sales fell 4 per cent to 13,35,468 units.

Three-wheeler sales rose 5.9 per cent to 81,288 units. Passenger carrier volumes grew 7.6 per cent and goods carrier sales improved 2.8 per cent. Electric three-wheelers, however, saw weaker activity, with e-rickshaw sales down 27.2 per cent and e-cart volumes lower by 3.4 per cent.

Total production of passenger vehicles, two-wheelers, three-wheelers and quadricycles stood at 28,01,412 units in October 2025, SIAM said.

Rajesh Menon, Director General, SIAM, said the record dispatches were driven by strong retail sentiment during the festive period and the GST rate cut effective from 22 September 2025. “Passenger Vehicle, Two and Three-Wheeler segments posted their highest ever dispatches to dealers in October, primarily buoyed by the festive demand and the recent GST rate reduction, despite being constrained due to certain logistic limitations,” he said.

Menon added that retail activity also strengthened. “With the reduced GST rates becoming effective from 22nd September 2025, October witnessed a strong uptick in vehicle registrations, resulting in a notable rise compared to wholesales,” he said.

The industry expects momentum to continue in the coming months, supported by steady consumer sentiment and easing cost pressures