India’s auto retail sector witnessed a notable surge in demand with the arrival of the festive season. The implementation of the revised GST structure further encouraged buyers to purchase cars and two-wheelers at reduced prices. As a result, the Federation of Automobile Dealers Associations (FADA) reported a 34% rise in retail sales during Navratri, while overall sales for September showed a 5.22% year-on-year (YoY) growth.
FADA data reveals that sales were initially slow in September, with sluggish momentum continuing for the first three weeks. This dip was largely due to buyers postponing purchases in anticipation of price cuts under the new GST rates, which became effective from September 22. The last week of Navratri coinciding with the rollout of these revised rates led to a strong sales rebound.
All vehicle categories, excluding three-wheelers and construction equipment, showed positive trends. Commenting on the performance, FADA Vice President Mr. Sai Giridhar remarked that Navratri 2025 marked a historic period for India’s auto retail sector, calling it a true ‘Bachat Utsav’ driven by GST 2.0, as dealerships across the country saw record footfalls and deliveries.
