Retail car sales soar to record high of over 52 lakh units in 42-day festive period: FADA

Auto retail sales in the domestic market witnessed a 21 per cent year-on-year increase during the 42-day festive period, led by record registrations of passenger cars and two-wheelers, helped by a GST adjustment that enabled a price reduction across segments, dealer body FADA said on Friday. Total retail sales increased to 52,38,401 units during the festive period this year, compared to 43,25,632 units in the same period last year, registering an increase of 21 percent.

“The 42-day festive season of 2025 stands as a defining milestone for the Indian auto retail industry, delivering the highest ever sales and growth across all categories,” CS Vigneshwar, president of the Federation of Automobile Dealers Associations (FADA) said in a statement.

The number of passenger car registrations rose to 7,66,918 units during this period against 6,21,539 units in the same period last year, registering an increase of 23 percent.”The GST 2.0 vision to increase affordability and boost middle-class consumption found real reflection on dealer floors. Compact cars and cars under 4 meters saw a strong revival as reduced tax rates expanded the buying base. Dealers also noted that retail momentum outpaced supply across models,” Vigneshwar said.

Two-wheeler retail sales rose up to 22 per cent to 40,52,503 units from 33,27,198 units in 2024. The segment was driven by improved rural sentiment, better liquidity and affordability impact of GST rationalisation, Vigneshwar said. Dealers described it as the best festive season in recent memory, with a strong uptake in commuting bikes and scooters, alongside rising interest in electric vehicles, he added.

Similarly, registrations of three-wheelers and commercial vehicles increased by 9 percent and 15 percent respectively during the 42-day period.

“The success of this season has reaffirmed that the GST 2.0 reform is not just a tax simplification but a catalyst for consumer-led growth and national prosperity. It has lowered the cost of ownership, boosted Bharat’s economy and reinvigorated ambition in every segment of society,” Vigneshwar said.

For the month of October, retail car sales rose 41 percent year-on-year to 40,23,923 units, driven by all-time high monthly sales of both passenger cars and two-wheelers.

Passenger car registrations rose to 5,57,373 units last month, an increase of 11 per cent from 5,00,578 units sold in October 2024.

Similarly, two-wheeler sales rose 52 percent year-on-year to 31,49,846 units in October against 20,75,578 units in the same month last year.

“Overall retail sales grew robustly as both passenger cars and two-wheelers reached record highs, indicating renewed consumer confidence and strong economic undercurrents. After an almost quiet September for the first 21 days due to the GST 2.0 transition, October witnessed a rapid recovery – almost like an obstacle race with pent-up demand passing the baton to festive sentiment and excitement over tax cuts, pushing sales to historic levels,” said Vigneshwar.

Three-wheeler sales grew 5 percent year-on-year to 1,29,517 units in October, while commercial vehicle sales recorded 18 percent growth over the same period last month.

“The outlook for the Indian auto retail industry over the next three months remains decisively positive, supported by the continued impact of GST 2.0, stable rural incomes and seasonal demand from weddings and harvests,” FADA said.

Festive overflow bookings, better stock availability and new model launches are expected to support retail momentum, supported by year-end offers and New Year registrations, it added.