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India’s passenger vehicle (PV) industry hit a historic high in October 2025, as festive-season enthusiasm and Goods and Services Tax (GST) reforms combined to deliver the sector’s best-ever monthly performance. Domestic wholesales surged 17% Year-on-Year (YoY) to 4.7 lakh units, surpassing January’s previous record of 4.05 lakh vehicles.The dual tailwinds of the GST rate cut — which reduced taxes on small cars from 28% to 18% — and the festive demand around Dussehra, Dhanteras, and Diwali fuelled this unprecedented momentum. Industry executives said retail sales likely crossed six lakh units during the month, outpacing factory dispatches as vehicles flew off showroom floors.Maruti Suzuki India, the country’s largest carmaker, maintained its dominance with domestic wholesales of 1,76,318 units in October, a 10.5% year-on-year rise. Its total dispatches, Including light commercial vehicles, reached 1,80,795 units — the highest in its 40-year history.The company's retail sales were even stronger at 2,42,096 units, up nearly 20%. “We expect our Vahan market share to be around 43.5%,” said Partho Banerjee, Senior Executive Officer (Marketing & Sales). Maruti recorded 5 lakh bookings during the 40-day festive period, almost double last year’s figure, with popular models such as the Fronx, Dzire, Swift, WagonR and Ertiga leading demand. The company ended October with just 1.04 lakh vehicles in stock — less than three weeks of inventory — despite running production on Sundays to replenish supplies.Tata Motors reported domestic dispatches of 61,134 units, a 27% increase over last year, driven by SUVs and electric vehicles (EVs). Sports Utility Vehicles (SUVs accounted for nearly 77% of Tata’s total sales, while EV volumes hit a record 9,286 units — a 73% jump year-on-year.According to the company, the Nexon continued to dominate, alongside robust demand for the Harrier and Safari models. Retail sales, according to Vahan data, touched 74,705 units, propelling Tata to the second spot in the domestic PV market for October, the company claimed.Mahindra & Mahindra (M&M) followed closely, achieving its best-ever monthly SUV sales at 71,624 units, up 31%. “October was a record month driven by strong SUV demand,” said Nalinikanth Gollagunta, CEO, Automotive Division, M&M. The company claimed that the updated Thar, Bolero, and Bolero Neo models drew strong consumer response, keeping Mahindra’s order books brimming.Also Read: Indian Automakers Post Strong Sales In October, Festive Demand Drives Growth | Republic WorldHyundai Motor India’s dispatches dipped slightly by 3% to 53,792 units, though combined sales of its Creta and Venue SUVs — at 30,119 units — were the company’s second highest ever. “Festivals and the positive impact of GST 2.0 reforms provided a significant boost to the industry,” said Tarun Garg, Whole-time Director & COO, Hyundai Motor India. Hyundai expects fresh momentum with the launch of the all-new Venue in early November.Japanese carmaker Toyota Kirloskar Motor (TKM) reported a 43% surge in volumes to 40,257 units. “The festive environment, reinforced by GST reforms, boosted customer confidence and enquiries,” said Varinder Wadhwa, Vice President, Sales, Service & Used Car Business, TKM.Kia India too posted its best-ever monthly performance with 29,556 units, up 30% year-on-year, while Skoda Auto India clocked record sales of 8,252 units as it expanded its dealership footprint nationwide.Automakers say the demand revival is broad-based, with both compact cars and SUVs benefiting from GST-led affordability. Dealers reported strong footfalls through the festive period, aided by easy financing and new model launches. Analysts expect momentum to extend into November as pending bookings are delivered before year-end.“The combination of tax rationalisation, new product excitement, and festive emotion has clearly lifted the Indian car market to an all-time high,” stated Puneet Gupta, Director, S&P Global Mobility, adding, “It signals not just a post-festive bump, but a structural recovery in consumer confidence.”
