New Delhi: The Indian automobile industry witnessed a notable revival in September, fueled by recent reforms in the Goods and Services Tax (GST) regime and the onset of the festive season. According to fresh data released by the Society of Indian Automobile Manufacturers (SIAM), both passenger vehicle and two-wheeler sales recorded solid year-on-year growth.
Passenger vehicle dispatches from manufacturers to dealerships grew by 4% in September, reaching 372,458 units, compared to 356,752 units during the same period last year. Meanwhile, two-wheeler sales rose by 7% to 2.16 million units, and three-wheeler sales climbed 5.5% to 84,077 units.
GST Rate Revision Spurs Demand
SIAM attributed this improved performance to the implementation of revised GST rates on September 22, which, although applicable for just nine days of the month, helped invigorate market sentiment.
Speaking to reporters, SIAM President Shailesh Chandra said, “The sector responded strongly to the GST 2.0 rollout. It’s a significant policy intervention that not only benefits end-users but also positions the Indian automotive ecosystem for robust future growth.”
Chandra also credited the traditional festive buying trend for supporting sales, stating that the September momentum may signal a turnaround after sluggish performance in July and August.
Quarterly Numbers Offer Mixed Signals
Despite the September spike, overall passenger vehicle sales in the July–September quarter declined by 1.5%, totaling 1,039,200 units, slightly below the 1,055,137 units recorded in Q2 of FY 2024–25. However, the two-wheeler segment showed resilience, with quarterly sales climbing to 5.56 million units, marking a 7% year-on-year increase. Three-wheeler sales rose 10% to reach 229,239 units in the same period.
Chandra emphasized that although the quarter began on a weak note, September’s figures indicate that consumer sentiment is rebounding, and manufacturers are optimistic about sustaining this momentum through the remainder of the festive season and into the new year.
Industry Hopes for Strong Finish to FY25
With major festivals like Dussehra and Diwali still ahead, the industry is hopeful of maintaining its growth trajectory. Manufacturers and dealers alike are banking on improved rural demand, rising disposable income, and policy-driven incentives to lift overall performance in the second half of the fiscal year.
