Passenger vehicle sales continued to build on the post-GST upswing in November. Industry dispatches rose 18.6% year-on-year to 420,664 units, compared with 354,543 units in November 2024, aided by festive buying and the GST cuts announced at the end of September. Despite the year-on-year strength, volumes tapered on a sequential basis from the 470,000 units logged in October, indicating that the buoyancy of the festival weeks is now settling into a more normal rhythm.
Maruti Suzuki remained firmly in the lead, posting a 21% rise in domestic sales to 170,971 units against 141,312 units a year earlier. Company executives attributed the improvement partly to sustained demand for SUVs but stressed that entry-level hatchbacks such as the Alto are also regaining momentum after years of muted sentiment in the small-car segment. According to Rahul Bharti, senior executive officer for corporate affairs, the GST reduction has played a decisive role in bringing first-time buyers back into showrooms. He said the revival of the entry segment proved that the earlier assumption that SUVs alone were driving the industry was misplaced.
What did Rahul Bharti say ?
“After many years the small car customer is bouncing back in full strength because of the GST reform,” he said. “If the large cars and SUVs were growing anyway at high rates and the entry customers were also buying expensive cars, then the industry before GST should have been growing 20% plus. But it was stagnant at nearly zero per cent. So obviously this narrative is totally incorrect, which the GST benefit has proven,” Bharti added.
Mahindra & Mahindra and Tata Motors continued to jostle for the second and third positions in the market, with both players reporting a 22% year-on-year increase in passenger vehicle sales. M&M’s domestic tally rose to 56,336 units from 46,222 units, backed almost entirely by SUVs. Tata Motors recorded volumes of 57,436 units compared with 47,063 units a year ago, maintaining its narrow lead over M&M. Hyundai Motor India delivered quieter growth at 4.3%, selling 50,340 units versus 48,246 units last November. Together, Maruti Suzuki, Hyundai, Tata Motors and Mahindra account for over 80% of the passenger car market.
How did GST reform boost auto sales?
The industry has been benefiting from the government’s decision to lower levies on SUVs above 1,500 cc to 40% from about 50%, and on small cars to 18% from 28%.
“Supported by GST 2.0 reforms, we continue to carry forward sales momentum with a year-on-year growth in our monthly domestic sales in November 2025. Further, our commitment to bolstering India’s role as a global manufacturing hub is further solidified with 26.9% year-on-year growth in monthly exports,” Hyundai Motor India COO Tarun Garg said.
Nalinikanth Gollagunta, CEO of the automotive division of M&M said that in November the company celebrated the first anniversary of its Electric Origin SUV line-up and launched the country’s first authentic seven-seater Electric Origin model, the XEV 9S, along with the Mahindra BE 6 Formula E Edition, which has been billed as the world’s first Formula E-themed special edition SUV.