Vehicle Sales Spike
NEW DELHI
India’s automobile sector recorded its highest-ever monthly sales in October, with total vehicle retail touching 4.02 million units, a 40.5% jump compared to 2.87 million units in the same month last year, according to data released by the Federation of Automobile Dealers Associations (FADA).
The remarkable rise was driven by the GST 2.0 reforms, a 42-day festive period, and a strong rural recovery. Passenger vehicle sales reached 5.57 lakh units, marking an 11% growth, while two-wheelers saw their best-ever month with 31.5 lakh units, up 52% year-on-year.
Commercial vehicles also rose by 17.7%, supported by increasing freight movement, rural logistics, and infrastructure growth. Tractor sales grew 14.2%, reflecting strong rural demand.
FADA President C.S. Vigneshwar described October as a “landmark month” for India’s auto retail sector. He said the combination of festive excitement, tax cuts, and pent-up demand following the GST 2.0 transition led to an extraordinary rebound in sales.
GST rate cuts, especially on entry-level two-wheelers and small cars, made vehicles more affordable, particularly for first-time buyers in rural areas. Strong monsoon rains and higher farm incomes also supported rural spending.
Dealers reported record customer enquiries and faster conversions, while passenger vehicle inventory improved by nearly a week.
Vigneshwar said the GST 2.0 reform proved truly transformational, helping “turn sentiment into action.” He called the festive period a milestone for Indian auto retail, representing “Simpler Tax, Stronger Growth,” and marking the rise of “Bharat” as the nation’s new growth engine.