By Sharmistha Mukherjee

Copyright indiatimes

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Car sales in the local market rose in mid single-digits in September, after four months of decline, with automakers stepping up dispatches to meet increased customer demand post the implementation of the new tax rates on Sep 22, 2025. Industry estimates about 375,000-380,000 vehicles were dispatches from factories to dealerships last month, which is an increase of about 5-6% over the year-ago period. Retail sales are estimated to have risen by a whopping 25% with customers availing of price benefits from tax cuts, festive offers extended by automakers and making purchases during the Navratri. Market leader Maruti Suzuki reported 8% decline in wholesales last month at 132,820 units. Partho Banerjee, senior executive officer, marketing and sales, Maruti Suzuki, said, the wholesale numbers have to be seen in context of dispatches being largely limited for the first three weeks of the month, ahead of the transition to the new GST rates. “Our dispatches were in line with capacity for outward logistics. We are dispatching 10,000 vehicles every day but there are constraints in logistics which should get sorted in the second week of October.” Retail sales for the company went up by 27.5% to 173,500 units in September. That aside, Banerjee said there are tailwinds from the tax cuts, reduced repo rates and the revision in income tax slabs announced earlier in the year. “This Navratri will be the best-ever for us in a decade. We have already retailed 165,000 vehicles in the first eight days. With two days to go, this number should increase to 200,000 units”, Banerjee said. Maruti Suzuki has pending orders for 250,000 units and is registering additional bookings of more than 18,000 units per day. Tarun Garg, Whole-time Director & Chief Operating Officer, HMIL confirmed, post the announcement of GST 2.0 reforms, the company both domestic and export markets now “growing in tandem”. “Our domestic sales in September stood at 51,547 units, driven by vibrant festive demand and strong customer interest across all segments. We have also witnessed highest-ever domestic SUV sales penetration in the history of the Company at 72.4%”, Garg informed. At Hyundai, domestic sales rose by about 1% in September. Live EventsHomegrown auto major Tata Motors raced past the rival Mahindra & Mahindra (M&M) and Hyundai Motor India to sell a record 59,667 units last month. Tata Motors’ passenger vehicle sales grew by a robust 45% last month. At Mahindra, sales went up by 10% to 56,233 units. “Across our portfolio, customer interest remained exceptionally strong with new bookings doubling in the latter half of September following the lowering of GST rates”, Shailesh Chandra, managing director, Tata Motors Passenger Vehicles, said, adding, “This surge in demand (in the PV industry) sets a promising tone for sustained growth in the months ahead.”With the festive season gathering momentum, we are confident of a strong performance ahead. Right now, our foremost priority is to ensure timely deliveries so that customers can celebrate the festivities in their favourite Toyota, making this season truly special”, Varinder Wadhwa, Vice President, Sales-Service-Used Car Business concurred. Nalinikanth Gollagunta, CEO, Automotive Division, M&M, said while the impetus from GST 2.0 and the preceding weeks’ pent-up demand, has resulted in robust growth in dealer reported customer retails during the first nine days of Navratri* – with over 60% growth in the SUV segment compared to the first nine days of Navratri last year – there are significant constraints on availability of trailers. “We are working to improve dispatches to our dealer network within the constraints”, Gollagunta informed. In the two-wheeler segment too, demand remained healthy. At TVS Motor Company, two-wheeler sales last month went up by 12% to 413,279 units. Pune-based Bajaj Auto saw two-wheeler sales in the local market increase by 5% to 273,188 units in the month under review. At the premium end of the market, Royal Enfield reported a growth of 43% to sell 113,573 units in September. In the commercial vehicle segment, market leader Tata Motors saw volumes grow by 16% to 33,148 units in September. Rival Ashok Leyland saw commercial vehicle sales rise 7% to 17,209 units last month.Girish Wagh, Executive Director of Tata Motors, said, “Q2 FY26 was a mixed quarter for the commercial vehicles industry, marked by subdued market conditions and ending with a promising resurgence in demand. While July faced headwinds due to monsoon and August reflected cautious sentiment ahead of the GST 2.0 rollout, the onset of the festive season and lower GST rates from late September brought a good recovery in sales, bookings and sentiment.” Looking ahead, Wagh said, with the festive season underway, improving consumption, and the full impact of GST reforms yet to unfold, the company anticipates a strong second half for FY26. In the farm equipment sector, Mahindra reported a growth of 50% to sell 64,946 tractors in the domestic market last month. Veejay Nakra, President – Farm Equipment Business, Mahindra & Mahindra said, “The GST rate cut has increased offtake in the first 9 days of Navratri which is in the month of September this year compared to October last year. This has been further supported by factors like a positive Kharif outlook, increase in the area sown this season and an above-normal monsoon.”Add as a Reliable and Trusted News Source Add Now!
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