Record Festive Sales Drive Auto Sector to New Highs in October 2025

India’s auto industry recorded its strongest-ever October in 2025, propelled by robust festive-season demand, lower GST rates, and a growing consumer shift toward SUVs and electric vehicles (EVs). Leading manufacturers reported record dispatches across passenger, two-wheeler, and commercial vehicle segments, underscoring the sector’s pivotal role in India’s economic revival. 

The upbeat sentiment was mirrored in today’s stock market action. Mahindra & Mahindra rose 1.77 per cent to Rs 3,548.90, Tata Motors (Passenger Vehicles) gained 1.71 per cent to Rs 417.00, while Maruti Suzuki slipped 3.31 per cent to Rs 15,651.00 after its sharp rally past weeks, reflecting a mix of profit-booking and sustained optimism in the auto space.

Festive Demand and GST 2.0 Reform Boost

The robust sales performance in October was powered by a perfect confluence of factors — festive sentiment, pent-up demand, and structural policy reforms under GST 2.0.

• GST on small cars was reduced from 28 per cent to 18 per cent, improving affordability in Tier-2 and Tier-3 cities.
• Larger cars and premium bikes now attract a flat 40 per cent tax, simplifying pricing structures.

Dealerships across India reported record footfall, with retail sales rising more than 30 per cent year-on-year during Navratri and Diwali. The month was dubbed a “Bachat Utsav” (Festival of Savings) by retailers, reflecting widespread enthusiasm across vehicle categories.

Company-Wise Sales: Record Numbers Across Segments

The following table compares October 2025 vs October 2024 sales figures for leading listed automakers across different vehicle segments:

Segment Trends: SUVs, EVs, and Two-Wheelers Lead the Charge

Passenger Vehicles (PVs):

SUVs continued to dominate, accounting for over 40 per cent of total PV sales. Tata Motors and Mahindra were standout performers, with Tata’s electric portfolio and Mahindra’s new SUV line-up driving growth. Maruti Suzuki’s compact car range — including Baleno, Swift, and WagonR — also benefited from the GST reduction, helping revive small car demand.

Electric Vehicles (EVs):

EV adoption gained momentum, led by Tata Motors' 9,286 EV units, a 73 per cent YoY surge. Bajaj Auto topped EV two-wheeler sales at 31,168 units, followed by TVS (29,484 units) and Ather Energy (28,061 units). The segment now contributes over 8 per cent of total two-wheeler volumes.

Two-Wheelers:

The two-wheeler market witnessed strong retail sales during the festive period. Hero MotoCorp retained leadership with 9.94 lakh units. Honda Motorcycle & Scooter India followed with 8.2 lakh units. TVS Motor sold 5.57 lakh units, while Royal Enfield achieved its best-ever festive season performance, selling over 2.49 lakh motorcycles during September–October.

Commercial Vehicles (CVs):

Infrastructure expansion, logistics growth, and rising construction activity fueled demand for commercial vehicles. Tata Motors, Ashok Leyland, and Eicher all posted double-digit growth

What’s Driving the Boom?

Several key factors explain October’s record-breaking performance:

• Festive Sentiment: Consumers deferred purchases ahead of GST 2.0 rollout, creating pent-up demand unleashed in October.
• Lower Taxes: GST cuts boosted small car affordability and accelerated demand in budget and compact segments.
• SUV and EV Craze: Changing preferences continue to tilt the market toward SUVs and eco-friendly models.
• Rural Recovery and Exports: TVS and Hyundai benefited from strong rural and overseas sales, underscoring India’s diversified demand base.

Market & Analyst Views

Market analysts expect this momentum to extend through the December quarter, supported by sustained consumer sentiment and upcoming model launches like Maruti’s e-Vitara, Tata’s Sierra, and Mahindra’s XEV 9S. However, experts caution that post-festive normalisation could moderate growth. Rising input costs, potential rate hikes, and slower export demand may pose short-term challenges. Still, structural trends remain positive — EV penetration, premium SUV launches, and government-led infrastructure push will continue to support the industry’s long-term expansion.

Stock Market Reaction

Auto stocks rallied following the release of October sales data.

• Tata Motors gained on expectations of margin expansion and volume-led earnings growth.
• Mahindra & Mahindra outperformed the broader auto index, with analysts revising FY26 earnings estimates upward.
• TVS Motor and Eicher Motors also saw investor interest amid continued rural recovery and EV expansion.

Investors view auto stocks as key indicators of India’s consumption strength — and October’s record figures reaffirm that confidence.

Outlook: A Historic October, Promising Future

October 2025 stands as a landmark month for India’s automotive sector. From record passenger car dispatches to booming EV adoption, the data reflects a dynamic shift in consumer behaviour and industry strategy. With supportive government policy, improving affordability, and sustained demand across urban and rural India, the sector appears well-positioned for continued growth into 2026. The road ahead may see temporary bumps, but the long-term direction is clear — India’s auto industry is driving full speed into a new era of efficiency, electrification, and expansion.