Auto sales outlook positive for next 3 months over GST cut and steady rural income: FADA - The New Indian Express
Auto sales growth to continue till FY29 supported by GST 2.0, income tax cuts & upcoming 8th pay commission: ReportFile photo/ ANI
NEW DELHI: India’s automobile sales are expected to remain at a healthy level over the next three months on the back of several positives such as reduction in goods & service tax (GST) rate and steady rural income, said auto dealers body FADA on Friday. The Federation of Automobile Dealers Associations (FADA) informed that overall auto retail sales hit an all-time high of 4.02 million units in October 2025, up 40.53 percent year-on-year.
“The outlook for India’s auto retail over the next three months remains decisively positive, backed by the continued impact of GST 2.0, steady rural income, and seasonal demand from weddings and harvests. Festive spillover bookings, better stock availability, and new model launches are expected to sustain retail momentum, supported by year-end offers and new-year registrations. As per FADA’s Dealer survey, 70 percent expect growth to continue,” said FADA in a statement.
Passenger vehicle (PV) retail sales grew 11 percent YoY in October 2025, decisively breaching the five-lakh mark to close at 5.57 lakh units, the highest ever in India’s retail history. Two-wheeler sales hit a record 3.15 million units, up 52 percent from 2.1 million in October 2024.
“October’25 will be remembered as a landmark month for India’s auto retail, where reforms, festivities, and rural resurgence came together to deliver record-breaking results. Overall retail sales grew by a robust 40.5% YoY, as both passenger vehicles and two-wheelers achieved lifetime highs, signalling renewed consumer confidence and strong economic undercurrents,” said FADA President C S Vigneshwar.
He added that after an almost quiet September for the first 21 days due to the GST 2.0 transition, October witnessed a swift rebound, almost like a hurdle race where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels.
“The introduction of GST 2.0 proved transformational — lowering small-car GST rates made vehicle ownership more attainable, especially for the cost-sensitive first time buyer. This affordability boost, timed perfectly with the festive season, turned sentiment into action,” said Vigneshwar. During the 42-day festive period of 2025, overall vehicle retails surged 21 percent YoY to 5.23 million units.