The Indian auto retail sector experienced a significant spike in demand with the onset of the festive season. Additionally, the recent GST reform motivated prospective buyers to purchase cars and two-wheelers at more affordable rates. As a result, FADA recorded a 34 percent increase in retail figures during the Navratri period, while the overall September sales chart reflected a 5.22 percent year-on-year growth.
According to data shared by FADA, September started with sluggish sales, which continued through the first three weeks of the month. A major factor contributing to this slowdown was that potential buyers were holding off purchases in anticipation of price reductions under the revised GST structure, which was set to take effect from September 22. Moreover, the final week of Navratri celebrations aligned with the rollout of the lower GST rates, resulting in a strong finish for the month. Overall, September recorded a 5.22 percent year-on-year growth, with all vehicle segments, except three-wheelers and construction equipment, showing encouraging momentum.
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Category-wise, 2W, PV, Trac, and CV posted YoY growth of 6.5 pc, 5.8 pc, 3.6 pc, and 2.6 pc, respectively, while 3W and CE recorded a decline of 7.2 pc and 19 pc.
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Reflecting on September 2025 Auto Retail performance, FADA Vice President Mr. Sai Giridhar said: "Navratri 2025 will go down as one of the most memorable chapters in India's automobile retail journey- a true 'Bachat Utsav' unleashed by the visionary GST 2.0 reform announced by Hon'ble Prime Minister Shri Narendra Modi ji. For the first time ever, dealerships across the nation witnessed record-breaking footfalls and deliveries, with overall retails surging by 34 pc YoY, a historic high during any festive season."
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