Retail sales of Indian vehicles, indicated by new registrations, were recorded at 1,827,337 units in September this year, a modest 5.22 percent year-on-year increase, according to data released by the Federation of Automobile Dealers Association (FADA) on Wednesday, October 8.
Even though retail car sales rose 34 percent between September 22 and 30 - the festival week - which was not enough to boost overall sales growth for the full month, the data showed.
Passenger vehicle sales in September 2025 rose 5.81 percent to 299,369 units, while two-wheeler sales rose by 6.1 percent to 1,287,735 units year on year. However, three-wheeler and commercial vehicle sales posted negative growth of 7.20% and 19% year-on-year, respectively.
“The first three weeks were largely muted, with customers holding back in anticipation of the Goods and Services Tax (GST) cut that came into effect in September. The dynamics have changed dramatically in the last week as the festival period coincided with a reduction in tax rate on certain categories of passenger vehicles, revival in customer sentiment and faster shipments from dealers,” said FADA vice-president Sai Giridhar.