CS Vigneshwar, President-FADA | Photo credit: DEBASISH BHADURI
A total of 91,953 units were sold in October alone, representing a total sales growth of 40.5 percent. The increase was mainly driven by the two-wheeler segment, which registered a growth of 51.76 percent, while passenger vehicles also saw a healthy growth of 11.35 percent, he said.
However, he pointed out that the luxury vehicle segment did not see a similar increase despite the VAT cut from 50 to 40 percent, as sales had fallen earlier in September due to expected budget cuts.
Vigneshwar was in Kochi for the Vyapar Kerala summit organized by FADA. A striking feature of the recovery is that sales have increased more in rural areas than in cities, he said.
Manoj Kurup, president, FADA Kerala, said that the GST cut in Kerala has strengthened the market for EVS. While total sales of all vehicles between April 2021 and July 2024 were 12,11,046 units, sales of E vehicles during the same period were 6,431 units. Commercial EV sales recorded a massive growth of 199.01 percent, while electric cars also registered a robust increase of 88.21 percent. Electric vehicles have become a huge favorite in the commercial vehicle segment, further underscoring the favorable market response to the changes in tax policies, he said.
The benefits are expected to spread throughout the ecosystem. The exemption will extend to the used car sales, workshops and parts sectors, significantly increasing employment opportunities. The reduced tax burden is fueling key consumer trends with two-wheeler sales increasing, two-wheeler owners upgrading to cars and small car owners buying bigger vehicles, leading to families buying more than one car, he added.
Published on December 3, 2025
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