New Delhi, 18th October 2025 — The implementation of GST 2.0 has sparked a remarkable surge in India’s automobile market, with car, bike, and three-wheeler sales witnessing historic growth in September. A combination of festive season demand, favorable tax revisions, and consumer-centric offers helped the sector rebound and accelerate.
According to the latest report from the Society of Indian Automobile Manufacturers (SIAM), September 2025 marked a turning point for the Indian automotive industry. The new GST structure has not only made vehicles more affordable but also boosted customer confidence, leading to increased sales across segments.
Passenger Vehicle Sales Climb 4.4% YoY
Passenger vehicle (PV) sales rose significantly, with 372,458 units sold in September 2025, up from 356,752 units in September 2024 — a 4.4% year-on-year growth.
Key automakers like Maruti Suzuki, Hyundai, Tata Motors, and Mahindra launched new models and rolled out festive offers, including flexible finance schemes and discounts. These promotions, coupled with the economic benefits of GST 2.0, encouraged consumers to make purchases ahead of the festive season.
Two-Wheeler Segment Leads the Charge with 7% Growth
The two-wheeler segment stood out with a 7% YoY growth, selling 2,160,889 units in September 2025 compared to 2,025,993 units a year earlier.
Companies such as Hero MotoCorp, Honda, TVS, and Bajaj Auto gained strong traction in both urban and rural markets, thanks to attractive EMI options, rural outreach programs, and limited-time offers. Demand was driven by budget-conscious consumers and improved economic sentiment in Tier II and Tier III cities.
Three-Wheelers See Uptick Driven by EVs and CNG
The three-wheeler segment also registered impressive performance. A total of 84,077 units were sold in September 2025, up from 79,683 units in the same month last year.
This growth was primarily powered by rising adoption of e-rickshaws and CNG auto-rickshaws. The government’s GST relief on electric vehicles (EVs) and continued subsidies under EV promotion schemes played a crucial role in supporting this transition to cleaner mobility.
Why GST 2.0 is a Game-Changer for the Auto Industry
The new GST 2.0 regime, introduced earlier this year, brought revised tax rates, simplified compliance, and increased affordability across various vehicle categories. By reducing the tax burden on both manufacturers and buyers, GST 2.0 created a more vibrant and accessible market.
Combined with positive consumer sentiment, rising disposable income, and festive timing, the policy reforms helped the auto sector regain its momentum after months of sluggish growth.
Looking Ahead
Industry analysts expect the positive trend to continue through Diwali and the rest of Q4 2025, especially if fuel prices remain stable and financing remains accessible. With growing consumer demand, policy support, and innovation from manufacturers, the Indian automobile industry is poised for a strong finish to the year.
