Festive Cheer Drives Auto Sales in September 2025; October Set for Surge

September 2025 marked the beginning of a significant upswing in the Indian automotive market, thanks to the festive season kicking off on September 22. With pent-up demand from August and the recent reduction in GST rates, passenger vehicle and two-wheeler sales have shown signs of revival. Let’s take a closer look at the key developments, including performance highlights from major players in the automotive sector.

Bajaj Auto: Strong Growth in Two-Wheeler Sales Despite Logistics Challenges

Bajaj Auto has reported a five percent rise in domestic two-wheeler volumes year-on-year, with a dramatic 48 percent increase in month-on-month sales. This growth is largely attributed to a boost in demand triggered by the festive season. Exports for the company remained steady at a 12 percent increase YoY. However, domestic commercial vehicle sales dipped by one percent YoY, although exports surged by an impressive 67 percent YoY. Despite some logistical challenges and late dealer offtake, the company remains optimistic about October, projecting continued positive trends.

TVS Motor: Strong Performance Across Domestic and Electric Vehicles

TVS Motor, another major player, reported an 11 percent rise in overall two-wheeler sales. Their domestic sales grew by 12 percent YoY, and their electric vehicle (EV) volumes showed a promising eight percent rise. This indicates growing consumer interest in EVs as part of the broader trend toward eco-friendly alternatives.

Hero MotoCorp: Exports Surge Despite Domestic Growth

Hero MotoCorp posted a five percent increase in domestic two-wheeler sales, with overall sales up by eight percent YoY. However, the standout performance came from its export markets, where volumes nearly doubled, increasing by 95 percent YoY. This suggests a growing demand for Hero products abroad, especially in markets where the brand has seen a rising presence.

Maruti Suzuki: Retail Demand Strong, Exports Surge Despite Logistics Issues

For Maruti Suzuki, retail demand remained strong, with approximately 200,000 deliveries and 250,000 pending bookings in September 2025. However, wholesale numbers took a slight hit, down eight percent YoY excluding sales to Toyota, due to ongoing logistical constraints. Including Toyota’s sales, domestic volumes fell by six percent YoY. On a positive note, exports surged by 52 percent YoY, helping offset domestic declines and pushing overall volumes up by three percent.

Hyundai: Modest Recovery in Domestic Sales, Huge Export Growth

Hyundai posted a modest one percent YoY increase in domestic sales, signaling a recovery in the market. However, the real success came in exports, which climbed by 44 percent YoY, a strong performance reflecting the growing demand for Hyundai vehicles outside India.

Mahindra & Mahindra: Stellar Tractor Sales and Utility Vehicle Growth

Mahindra & Mahindra had a great month in September, with a 10 percent growth in utility vehicle sales. The real highlight was in its tractor segment, where the company saw a 50 percent rise in tractor volumes, benefitting from strong demand during the Navratri festival. However, supply chain challenges did limit some of the potential growth, particularly with trailer availability.

Tata Motors: Impressive Growth in Passenger Vehicles and Small Commercial Vehicles

Tata Motors had an exceptionally strong month in September, reporting a 45 percent increase in domestic passenger vehicle sales YoY. Its commercial vehicle segment also saw robust growth, especially in small commercial vehicles and pick-ups, which grew by 30 percent YoY.

Ashok Leyland: Medium & Heavy Commercial Vehicles See Growth

Ashok Leyland reported a mixed performance, with medium and heavy commercial vehicle sales up by 5 percent YoY, driven by strong demand in the trucking segment. However, sales in the bus category declined by 9 percent YoY, as schools and public transport systems faced challenges during the festive season.

Eicher Motors: Royal Enfield Sales Hit Record High

Eicher Motors, the maker of Royal Enfield, had a standout month with 124,328 units sold, marking a 43 percent YoY increase. This growth was especially driven by demand for larger models above 350cc, despite higher GST rates. The surge in Royal Enfield sales highlights the continued appeal of premium motorcycles in India.

Conclusion: October Set to Deliver Stronger Sales Performance

While September showed promising signs of recovery, October 2025 is expected to be even stronger for the automotive sector. With the full impact of GST cuts and logistical challenges beginning to ease, a more robust sales performance is on the horizon for both domestic and export markets. The festive season is expected to continue driving demand, and companies are well-positioned to see sustained growth in the coming months.

FAQs:

What are the key drivers behind the increase in auto sales in September 2025?

Answer: The increase in auto sales in September 2025 can be attributed to pent-up demand from August, a reduction in GST rates, and the onset of the festive season, particularly after September 22.

Which company saw the highest growth in two-wheeler sales in September 2025?

Answer: TVS Motor saw an 11 percent increase in two-wheeler sales, with domestic sales growing by 12 percent YoY, including a boost in electric vehicle sales (up 8 percent YoY).

How did Maruti Suzuki perform in September 2025?

Answer: Maruti Suzuki faced challenges with wholesale dispatches, which were down 8 percent YoY excluding sales to Toyota, but exports grew by 52 percent YoY, helping offset the decline in domestic sales.

What impact did GST cuts have on the automotive sector?

Answer: The GST cuts helped reduce the overall cost of vehicles, boosting demand in both domestic and export markets. This had a particularly noticeable impact in September and is expected to further aid growth in October.

Which company reported the highest increase in tractor sales?

Answer: Mahindra & Mahindra reported a 50 percent increase in tractor sales in September 2025, driven largely by strong demand during the Navratri festival.

What does the future outlook look like for the Indian automotive market?

Answer: The outlook for the Indian automotive market is positive, with expectations for even stronger growth in October 2025. Improved logistics, the full impact of GST cuts, and ongoing festive demand are all set to boost sales numbers.