October Auto Sales in India Hit Record 40.2 Lakh Units on Festive Demand and GST Cuts

India’s automobile sector achieved a record-breaking milestone in October 2025, with retail vehicle sales soaring to 40.2 lakh units, marking the highest monthly total ever recorded. This surge was largely driven by robust festive demand, the rollout of GST 2.0, and stronger rural spending, according to the Federation of Automobile Dealers Associations (FADA).

The two-wheeler segment led this growth, witnessing a remarkable 51.8% rise to 31.5 lakh units, reflecting strong consumer enthusiasm during the extended 42-day festive period encompassing Dussehra, Dhanteras, and Diwali. Passenger vehicles also saw significant growth, increasing 11.4% to 5.57 lakh units over the previous year.

Major automakers reported unprecedented monthly sales figures. Maruti Suzuki maintained its leadership with its highest-ever domestic sales of 1,76,318 units, driven by sustained demand in the compact segment that includes popular models such as the Baleno, Swift, and WagonR. Tata Motors overtook competitors like Mahindra & Mahindra and Hyundai to secure the second spot with retail sales of 74,705 units, reflecting an impressive monthly growth of 81%.

Mahindra & Mahindra achieved its highest-ever monthly SUV sales, delivering 71,624 units, up 31% year-on-year, largely propelled by festive demand and new model editions. Toyota Kirloskar Motor and Kia India similarly reported strong performance, with TKM domestic dispatches growing 43% to 40,257 units and Kia achieving its best-ever monthly sales at 29,556 units.

Industry data highlighted that the festive season combined with GST rate rationalisation significantly boosted consumer sentiment across urban and rural India, resulting in a broad-based recovery in the auto market. Industry supply also improved, with stock levels rising to meet peak festive demand.

This record-breaking October underscores the auto industry's key role in India’s economic recovery and highlights the impact of policy measures and seasonal trends on consumer spending patterns.