The Indian automobile industry roared back to life in October 2025, fueled by robust festive demand and the recent GST rate rationalisation, which made vehicles more affordable across segments. The month witnessed record-high passenger vehicle (PV) sales, marking a major turnaround for the sector after months of subdued demand.
However, while the festive season brought cheer, the big question remains — can this momentum sustain beyond the celebrations?
Passenger Vehicle Industry Hits All-Time High
The passenger vehicle segment was the star performer in October. Maruti Suzuki India, Mahindra & Mahindra (M&M), and Tata Motors achieved record domestic sales, benefiting from both festive sentiment and GST-related price reductions.
In contrast, Hyundai Motor India reported a dip in volumes, despite the broader market momentum.
The GST restructuring has played a vital role in boosting affordability, making cars across categories more accessible to buyers and amplifying festive season enthusiasm.
Also Read: Three Major IPOs to Debut on Mainboard Next Week
Two-Wheeler Demand Remains Strong
The two-wheeler (2W) segment continued its steady climb, driven by solid demand in both motorcycles and scooters. Eicher Motors, with its premium motorcycles, sustained its growth trajectory, while TVS Motor Company led the scooter market with strong sales.
In the electric two-wheeler (E2W) space, momentum made a comeback after a brief slowdown in September. Bajaj Auto reclaimed its top position, overtaking TVS Motor, while Ather Energy maintained its third spot. Ola Electric, however, slipped to fourth place.
The rebound in electric two-wheelers highlights renewed consumer interest in cleaner mobility options amid festive buying.
Commercial Vehicle and Three-Wheeler Segments Stay Positive
The commercial vehicle (CV) sector remained buoyant, supported by increased government spending and a revival in infrastructure activity. These factors drove higher fleet demand, reinforcing confidence in the segment’s long-term growth.
Meanwhile, the three-wheeler category also saw strong momentum, largely due to the rising need for last-mile connectivity. TVS Motor capitalised on this trend, posting a robust performance and strengthening its position in this growing market.
Tractor Demand Stays Steady on Rural Strength
Tractor sales remained stable, supported by favourable rural dynamics such as timely monsoon rains, healthy reservoir levels, and the early onset of the festive season. These factors continue to boost rural consumption and agricultural activities, creating a steady demand base for tractor manufacturers.
Exports See a Mild Slowdown
While domestic volumes surged, exports witnessed a slight dip in October. Both Maruti Suzuki and Eicher Motors reported lower export figures compared to the previous months. Despite the slowdown, exports continue to be an important growth lever for automakers, offering a cushion against domestic market fluctuations.
Outlook: Sustainability in Focus
With the GST rate cut and the festive season driving strong sales across categories, automakers are optimistic about near-term growth. Maruti Suzuki noted a rise in first-time car buyers after the GST revision — a positive sign for the broader market.
However, the real test lies in the coming months, as the industry evaluates whether the sales momentum is sustainable beyond the festive spike.
Click here to explore:
FII DII Data
IPO
BSE Sensex
