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ANIPassenger vehicle sales grew 23% to 766,918 units, marking an all-time festive high. Vehicle retail sales in India hit an all-time high of about 4 million units in October, spurred by unprecedented demand for passenger vehicles and two-wheelers.Sales as counted through vehicle registrations climbed 40.5% from a year earlier last month. Pent-up demand, lower vehicle prices following goods and services tax (GST) cuts by the government, and robust consumer sentiment in the festive season lifted retails across categories.While passenger vehicle registrations reached a monthly record 557,373 units, two-wheelers also achieved their highest-ever level of 3,149,846 units in October. Automobile sales had remained muted in the first three weeks of September ahead of the transition to the new GST rates, which coincided with the start of the Navratri festival.“October’25 will be remembered as a landmark month for India’s auto retail, where reforms, festivities, and rural resurgence came together to deliver record-breaking results,” said C S Vigneshwar, president, Federation of Automobile Dealers Associations (Fada). “Overall retail sales grew by a robust 40.5% YoY, as both passenger vehicles and two-wheelers achieved lifetime highs, signalling renewed consumer confidence and strong economic undercurrents.”Live EventsWith the GST recast boosting affordability, especially of first-time vehicle owners, there was robust growth in retail sales across urban and rural markets, according to dealers. “Rural India became the true growth engine — with favourable monsoons, higher farm incomes, and government infrastructure push driving purchasing power,” said Vigneshwar, noting that “rural PV sales grew over three times faster than urban, while rural 2W growth nearly doubled urban rates, marking a structural shift in the demand map of India’s auto sector.” Partho Banerjee, senior executive officer, marketing and sales at the country’s largest carmaker Maruti Suzuki said upcountry markets outpaced urban areas in sales growth. “Our bookings were up by 50% in the top 100 cities post GST reset. The pace of growth was even higher in the market beyond that at 65%,” he said.Data collated by Fada from the government’s Vahan portal showed registrations of three-wheelers, commercial vehicles, and tractors rose by 5.4%, 17.7% and 14.2%, respectively in October. However, construction equipment sales fell 30.5% as an extended monsoon this year delayed infrastructure development projects.Tarun Garg, chief operating officer at Hyundai Motor India is optimistic of the demand momentum sustaining going ahead. “While the rate of growth will be lower post festive, demand should continue,” he said. “Money will now come into the hands of customers in rural areas with the harvest; the marriage season has begun. New model launches will also keep customers engaged and generate demand.”During the 42-day festive period encompassing Navratri and Diwali, vehicle retails rose 21% to a record 5,238,401 units. Vigneshwar said the festive season was unique with Dussehra and Diwali falling in the same month, coinciding perfectly with the rollout of the new GST framework. He said dealers across the country reported record enquiries, higher conversions, and positive sentiments as customers advanced purchases to benefit from reduced GST rates and attractive festive schemes. Two-wheeler sales this festive season rose 22% to 4,052,503 units year-on-year, sparked by improved rural sentiment, better liquidity, and affordability due to GST rationalisation. Dealers said they saw strong traction in commuter motorcycles and scooters, besides rising interest in EVs.Meanwhile, passenger vehicle sales grew 23% to 766,918 units, marking an all-time festive high. Compact and sub-4-metre cars saw a strong surge in demand as reduced tax rates expanded the buying base.Commercial vehicle sales too rose by 15%, driven by rising freight activity, rural logistics, and infrastructure push. Tractor registrations grew 14%, three wheeler retails by 9%. Registrations of construction equipment, however, fell by 24%, due to project delays and constraints in finance availability.The outlook for India’s auto retail over the next three months remains decisively positive, Vigneshwar said, backed by the continued impact of GST 2.0 particularly in the mass and entry-level segments, steady rural income, and seasonal demand from weddings and harvests. Festive spillover bookings, better stock availability, and new model launches are expected to sustain retail momentum, supported by year-end offers and new-year registrations.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onvehicle retail salesoctober vehicle salesvehicle gst cutauto industryindian auto industryauto sales datafadasiammaruti suzukihyundai motor india (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) 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