India’s automobile market recorded a robust performance in October 2025, hitting a fresh monthly high as passenger vehicle (PV) wholesales surged nearly 17% to 4.6 lakh units. The sharp uptick was largely driven by vibrant festive-season buying during Navratri and Diwali, coupled with the favourable impact of GST rate cuts implemented in late September 2025.
According to industry data, 460,739 PV units were dispatched in October, reflecting strong consumer sentiment and improved affordability in the segment. Manufacturers reported heightened demand across categories, with utility vehicles leading the charge.
SUVs, MPVs Continue to Dominate
The utility vehicle (UV) category, which includes SUVs and MPVs, maintained its commanding momentum, clocking 3,16,785 units in sales. The segment’s ongoing dominance underscores the Indian consumer’s steady shift toward larger, feature-rich vehicles.
Two-Wheeler Trends: Scooters Rise, Motorcycles Dip
The two-wheeler market showed a mixed trend:
Scooter sales jumped 14%, with approximately 7,38,816 units sold. The rise is attributed to growing urban mobility needs and increasing preference for automatic transmission two-wheelers.
Motorcycle sales slipped around 4%, totalling 14,99,790 units. Analysts suggest that rural market softness and delayed monsoon patterns may have contributed to the decline.
Festive Cheer and Tax Relief Boost Industry
Industry experts say the combination of festive demand and recent GST reductions has significantly improved buyer sentiment, especially in entry-level and mid-segment categories. The timing of the tax cut just ahead of the festive period amplified footfall at dealerships and helped manufacturers clear inventories.
Outlook Positive for FY26
With the upcoming wedding season and expected improvement in rural demand, automakers remain optimistic for the remainder of FY26. The October numbers suggest a strong revival across segments and indicate that India’s auto sector is firmly back on a growth trajectory.
India’s record-breaking October underscores the industry’s resilience and reaffirms its position as one of the fastest-growing automotive markets globally.
