The Indian automobile market saw record sales in October 2025. The GST reduction and the festive season led to strong demand across all segments, including passenger vehicles, two-wheelers, and three-wheelers. Let's take a closer look.

Auto industry booms in October 2025

October 2025 proved to be a significant month for India's auto sector. This month saw record-breaking sales across all segments—passenger vehicles, two-wheelers, and three-wheelers. It's been a long time since all three segments have recorded such significant growth simultaneously. This was largely due to the GST reduction, while festivals like Diwali, Navratri, and Dhanteras further bolstered market demand, leading to a sharp surge in both supply and retail.

Passenger vehicle segment broke all records

• According to SIAM data, the passenger vehicle segment demonstrated strong performance in October 2025. Vehicle sales increased 17% this month to 460,739 units, compared to 393,238 units last year. The growing popularity of SUVs, continued launches of new cars, and easy EMI options further fueled this growth. Car demand remained strong in both urban and rural markets, and for the first time, such a large number of vehicles were dispatched to dealers.

Scooters dominate two-wheelers

• The two-wheeler segment also recorded strong growth. Total two-wheeler shipments increased 2% to 2,210,727 units. Scooters accounted for the largest share, with sales increasing 14% to 824,003 units. This represents growth of over 100,000 units, indicating continued growth in demand for scooters in urban areas. Easy-to-drive, feature-rich, and fuel-efficient scooters are becoming increasingly popular among youth and women.

The motorcycle segment remained weak.

The motorcycle segment saw a slight decline this year. Sales fell 4% to 1,335,468 units. This decline indicates slowing demand, especially in rural areas. However, the two-, three-, and electric three-wheeler markets provided strength to the industry. Sales in this segment increased 6% to 81,288 units.

SIAM statement

• According to Rajesh Menon, Director General of SIAM, October 2025 was the best month in terms of supply in the history of India's auto industry. He explained that this growth was driven by two main reasons: first, the festive season, which accelerated purchases, and second, the reduction in GST rates, which reduced vehicle prices and made it easier for customers to purchase.