Passenger vehicle retail sales shot up 35% year-on-year during the nine-day Navratri period this year, marking one of the strongest festive starts for the auto industry and setting the tone for what dealers expect to be a record-breaking Diwali season.
According to data released by the Federation of Automobile Dealers Associations (FADA) on Tuesday, passenger vehicle (PV) retails rose to 2,17,744 units during the period, up from 1,61,443 units last year, as festive fervour met the rollout of lower GST rates, unleashing pent-up demand.
FADA said the sharp surge in Navratri sales helped overall September passenger vehicle registrations grow 6% to 2,99,369 units from 2,82,945 units a year ago. The first three weeks of the month had been largely subdued, as customers delayed purchases in anticipation of GST 2.0 reforms. It was only after new rates came into effect from September 22, coinciding with the start of Navratri, that sales across showrooms accelerated sharply.
What did FADA VP say?
“September 2025 was an exceptionally unique month for the automobile retail industry. The first three weeks were muted, but once lower GST rates came into effect, customer sentiment revived dramatically,” FADA vice president Sai Giridhar said. He added that the combination of policy change and festive optimism turned the final week into one of the most vibrant sales phases the industry has seen in recent years.
The auto body said that all major segments recorded healthy gains during the nine-day festive period. Two-wheeler sales rose 36% to 8,35,364 units from 6,14,460 units a year earlier, buoyed by improved affordability, festive discounts, and rural demand recovery. Three-wheeler retails climbed 25% to 46,204 units, commercial vehicle sales increased 15% to 33,856 units, and tractor sales grew 19% to 21,604 units. Overall retail sales across categories surged 34% to 11,56,935 units during Navratri, compared with 8,63,327 units in the same period last year.
Dealers also credited aggressive offers from original equipment manufacturers (OEM) and easy financing options for fuelling the rebound.
September ends strong
The strong closing to September has set up what could be the most buoyant 42-day festive season yet. FADA said the alignment of lower tax rates, above-normal monsoon rains, a healthy kharif harvest, and stable policy rates has boosted purchasing power across both rural and urban markets. “Dhanteras and Deepawali are expected to deliver all-time high sales, with surging enquiries and bookings in two-wheelers, passenger vehicles, and commercial vehicles alike,” Giridhar said.
FADA said that if supply chains and logistics remain smooth, this could turn out to be the best festive retail season the industry has ever experienced.