EEST TV | October 2025
This Navratri, India’s auto market shifted into top gear. Showrooms across the country were packed with happy buyers, and vehicle deliveries hit record highs.
According to the Federation of Automobile Dealers Associations (FADA), overall auto retail sales jumped 34% this festive season — marking one of the strongest growth phases for the industry in recent years.
Festive Spirit Fuels Demand
The joy of Navratri and fresh government tax relief have combined to supercharge sales. From families purchasing their first car to youth upgrading their two-wheelers, the enthusiasm has been widespread.
- Passenger Vehicles: Sales grew by 31%, with compact SUVs and hybrid cars leading the race.
- Two-Wheelers: Surged by 37%, powered by rising rural incomes and better financing.
- Commercial Vehicles: Up 28%, reflecting stronger business and logistics activity.
Dealers say the rush started right from the first day of Navratri. “We haven’t seen such energy in years,” said a Lucknow-based showroom manager. “People were lining up before opening hours.”
GST Cuts Give Buyers a Boost
The recent GST rate reduction on small cars and hybrid vehicles — from 28% to 22% — has been a major game changer. Buyers have benefited from on-road savings of up to ₹60,000, making this festive season the perfect time to buy.
Industry insiders say this move restored confidence after months of cautious spending. “The GST cut came as a big relief for customers and dealers alike,” added another dealer from Mumbai.
Rural India & EVs Steal the Show
Rural markets recorded a major comeback this season. After a strong harvest, farmers and small business owners invested in two-wheelers and utility vehicles.
Meanwhile, the electric vehicle segment saw a 42% growth, thanks to festive discounts, expanding charging infrastructure, and government incentives under the FAME-II scheme.
Outlook: Festive Cheer to Continue
Analysts predict that the auto industry could close FY2025 with a 15–18% growth rate, if consumer momentum continues through Diwali and New Year.
“This Navratri has proved that when policy and emotion align, the market moves forward,” said auto analyst Ramesh Agarwal. “GST relief has re-ignited India’s passion for new mobility.”
