The festive season of 2025 has driven domestic passenger vehicle (PV) sales in India to impressive heights, thanks largely to GST rate rationalisation and heightened consumer demand. According to industry data, domestic PV wholesales rose 5.4% year-on-year (YoY) to 3,81,437 units in September 2025, while retail volumes surged to nearly 4,00,000 units, up from 3,20,000 units in the previous year.

Maruti Suzuki, India’s leading carmaker, reported a 9.1% rise in domestic wholesales to 1,44,962 units, with bookings exceeding 3,50,000 units, a significant 35% increase YoY. The newly launched SUV, Victoris, attracted 25,000 bookings, reflecting strong consumer interest in premium festive models. Retail sales of Maruti vehicles rose 27.5% YoY to 1,73,500 units, underscoring the festive season as a critical period for car sales.

Tata Motors climbed to the second position with 59,667 units sold, marking a 45.3% YoY jump, while Mahindra & Mahindra (M&M) posted 56,233 units, up 10.1%, and Hyundai saw a modest 0.9% rise to 51,547 units. Maruti also achieved record exports of 42,204 units, a 52.2% increase, highlighting the brand’s international footprint.

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The festive surge brought strong demand but also logistical challenges, particularly in vehicle dispatches following GST rationalisation. Maruti’s Senior Executive Officer (Marketing and Sales), Partho Banerjee, noted that trucks now take nearly 20 days for a round trip, though normalisation is expected by October 10.

Tata Motors Managing Director, Shailesh Chandra, described September 2025 as a “watershed month”, with total PV sales, including exports, reaching 60,907 units, up 47% YoY. Electric vehicle (EV) sales surged 96% to 9,191 units, while CNG vehicle sales rose 105% to 17,800 units in Q2 FY26, reflecting India’s growing adoption of alternative fuel vehicles.

Mahindra & Mahindra reported 1,00,298 total vehicle sales, up 16% YoY, led primarily by SUVs and commercial vehicles. The positive trend extended to two-wheeler manufacturers, with Hero MotoCorp rising 5% to 6,47,582 units, TVS Motor growing 12% to 4,13,279 units, and Bajaj Auto up 5.3% to 2,73,188 units.

The GST rationalisation not only incentivised buyers but also contributed to higher retail demand, with customers opting for premium models, EVs, and CNG vehicles, reflecting a shift toward value-driven festive purchases. Analysts point out that festive seasons now play a strategic role for automobile companies, impacting production schedules, logistics, and sales strategies.

In conclusion, the September 2025 festive season showcased the impact of policy measures like GST rate cuts on automobile sales, alongside strong consumer sentiment and festive enthusiasm. With Maruti Suzuki, Tata Motors, and Mahindra & Mahindra leading the charge, and robust growth in EVs, CNG vehicles, and two-wheelers, the season reaffirmed the importance of festive demand in driving both domestic and export sales for India’s automobile industry.

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