Auto retail sales in October surge 40.5%, led by 2Ws, CVs and PVs: FADA

By Admin

08 Nov, 2025

India’s automobile industry witnessed a historic boom in October 2025, with overall retail sales soaring by 40.5% year-on-year (YoY)   marking the highest-ever monthly sales across all major vehicle categories. According to the latest data released by the Federation of Automobile Dealers Association (FADA), this surge was primarily driven by two-wheelers (2Ws), passenger vehicles (PVs), and commercial vehicles (CVs).

Record-Breaking Growth Across Segments

The auto retail industry reported strong double-digit growth in almost every segment:

• Two-Wheelers (2Ws): Up 51.76% YoY, reaching an impressive 31.5 lakh units, achieving lifetime highs.
  
  

• Passenger Vehicles (PVs): Rose 11.35% YoY to 5.57 lakh units, reflecting strong consumer sentiment.
  
  

• Three-Wheelers (3Ws): Increased 5.4% YoY, supported by rising demand in last-mile mobility.
  
  

• Commercial Vehicles (CVs): Recorded a 17.7% YoY growth, driven by infrastructure development and logistics demand.
  
  

• Tractors: Grew 14.2% YoY, while the Construction Equipment segment surged 30.5%, marking new records across the board.
  
  

The GST Cut Effect: A Game Changer

The GST cut implemented on September 22, 2025, played a pivotal role in reviving the sector. FADA President C.S. Vigneshwar credited this policy reform for transforming affordability and boosting consumer confidence. The reduction of GST on small cars to 18% made vehicle ownership more accessible, especially for first-time buyers in cost-sensitive segments.

“October 2025 will be remembered as a landmark month for India’s auto retail, where reforms, festivities, and rural resurgence came together to deliver record-breaking results,” said Vigneshwar. He added that the combination of festive demand, GST relief, and rural economic recovery created a “perfect storm” for unprecedented growth.

Rural India: The Driving Force

Interestingly, rural India emerged as the true growth engine of this surge. With favourable monsoons, higher farm incomes, and infrastructure push from the government, purchasing power in rural areas has seen a significant rise. According to FADA, rural PV sales grew over three times faster than urban, while rural 2W growth nearly doubled that of urban regions   highlighting a structural shift in India’s auto demand map.

From Slow September to Festive October

Following a relatively muted September   attributed to the GST 2.0 transition   the industry experienced a swift rebound in October. “It was almost like a hurdle race,” Vigneshwar remarked, “where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels.”

A Defining Chapter in India’s Auto Story

With record highs across every category, October 2025 stands as a defining chapter in India’s automobile history. The convergence of policy reform, positive consumer sentiment, and grassroots prosperity has positioned the sector for sustained momentum in the months ahead.

As FADA rightly put it   October 2025 wasn’t just about numbers; it was about the rise of Bharat   where every wheel, big or small, rolled toward a stronger, more confident India. 🚗🏍️🚜