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GST 2.0 and Navratri Festivities Drive 5.2% Jump in September Auto Retail Sales

GST reform expectations and festive buying bolstered September auto sales, reflecting a positive turn for India’s automobile sector despite broader market caution.
India’s auto retail sales rose 5.2% in September 2025, driven by festive demand and expectations of GST 2.0 reforms, according to FADA data. The late-month surge offset early softness, signaling renewed dealer confidence and inventory buildup ahead of the festive quarter. Analysts said upcoming policy clarity on GST changes could further boost consumer sentiment and support continued recovery in the automotive sector, particularly across passenger vehicles and two-wheelers.