The September auto retail sales were a tale of stark contradictions. On the one hand, most of September saw tepid sales growth due to Shraadh and buyers delaying their purchases to take advantage of the revised GST rates. On the other hand, hectic buying occurred in the last 9 days, as soon as Navratri and the new rates were implemented.

According to the Federation of Automobile Dealers Association, the total retail vehicle sales in September stood at 18,27,337 units, compared to 19,64,547 units in August 2025.  However, on a year-on-year basis, auto sales in September remained on the higher side. The auto sector reported a 5.22 per cent YoY growth in September as the total sales in September 2024 were 17,36,760 units, as per recent FADA data. 

Post GST cuts Navratri sales

As the GST cuts benefits took effect on September 22, coinciding with the start of the Navratri period, auto sales began to pick up momentum in September. The FADA data shows that the total vehicle sales in the Navratri period stood at 11,56,935 units. The Navtrari period sales saw a 34 per cent YoY growth this year, from 8,63,327vehicles sold during the same period last year. 

Furthermore, during the Navratri period this year, the 2-wheeler sales grew 35.9 per cent YoY, and PV sales increased by 34.8 per cent YoY. 

Overall September sales

However, the overall sales in the two-wheeler segment fell 6.26 per cent MoM in September. The total two-wheeler sales stood at 12,87,735 units, compared to 13,73,675 units in August. On a yearly basis, the two-wheeler sales were up 6.5 per cent in September.  

Further, the passenger vehicles segment reported a 7.39 per cent MoM decline in the month. The total PV sales in September were 2,99,369 units against 3,23,256 units in August. On a YoY basis, PV sales increased 5.8 per cent.