Overall retail auto sales slipped into double-digit decline in September, but a late surge in demand ahead of the festive season brought much-needed relief to manufacturers and lifted hopes for a stronger October.
According to Vahan data, registrations stood at 1.51 million units as of 2 PM on Tuesday, down 13.28% from 1.74 million units a year earlier. Industry executives pointed out that these figures are based on registrations, which often lag deliveries by a few days, meaning part of September’s sales will be reflected only in October numbers.
The first three weeks of September were marked by subdued demand, with buyers deferring purchases while awaiting festive discounts and clarity on GST rate changes. Sentiment was also dampened by the Pitru Paksha period, when many households traditionally postpone big-ticket purchases.
Increase in footfall and bookings
Momentum picked up after September 22, when Navratri celebrations began and the impact of GST rationalisation started feeding into the market. Showrooms reported a marked increase in footfall, bookings, and enquiries across segments, particularly in passenger cars and two-wheelers.
Maruti Suzuki, the country’s largest automaker, sold more than 75,000 units in just four days between September 22 and 25. To put this in context, Maruti sold around 135,000 units in the entire month of August, underscoring the sharp late-month rebound.
Comparison from last year
Analysts cautioned against reading the September data in isolation, noting the shift in festive timing compared with last year. In 2024, Navratri began only in October, meaning September did not see the seasonal uplift that is driving demand this year. The base, therefore, is not strictly comparable.
Industry players are upbeat about the coming months. With the festive season continuing into October and the wedding season to follow, expectations are high for sustained demand. The revised GST structure – 18% for cars up to 1,200 cc in petrol and 1,500 cc in diesel, 40% for larger vehicles, and 5% for electric vehicles – is expected to support growth.
