India’s Auto Sales Report October 2025: Retail sales surge 40.5%, led by 2Ws, CVs and PVs, says FADA

Overall automobile Retail sales in October 2025 rise 40.5% YoY, hitting all time high as per data released by Federation of Automobile Dealers Association (FADA).

2Ws grew 51.76% YoY to 31.5 lakh units, PV rose 11.35% YoY to 5.57 lakh units, 3Ws grew 5.4% while

CV segment reported 17.7% YoY growth. Tractor sales grew 14.2% YoY while Construction Equipment segment grew 30.5%, FADA data shows. These are all record high due to GST cut effected since September 22, 2025.

FADA President C S Vigneshwar said: “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,” he said.

“After an almost quiet September for 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,” he added.

He said the the GST cut proved transformational and the lowering small-car GST rates [to 18%] 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,” he said.

“The standout story of the month was the rise of Bharat. Rural India became the true growth engine — with favourable monsoons, higher farm incomes, and government infrastructure push driving purchasing power. Rural PV sales grew over three times faster than urban, while rural 2W growth nearly doubled urban rates, marking a structural shift in the demand map of India’s auto sector,” he added.

“October 2025, thus, stands as a defining chapter — a month when good policy, strong sentiment, and grassroots prosperity combined to create history for Indian auto retail,” he emphasised.