India's Auto Sector Surges 49% in September as GST Cut Boosts Sales
The Indian automotive sector witnessed a significant boost in September 2025, with a 49% surge in tractor sales and a positive response from both urban and rural buyers following a GST reduction. This led to a swift increase in footfalls and bookings for car dealers nationwide.
The tractor segment, a traditional indicator of rural demand, saw a remarkable 49% year-on-year increase in sales, driven by strong monsoon coverage and improved farm incomes. Meanwhile, passenger vehicle (PV) makers and two-wheeler brands experienced a positive response from buyers, thanks to the price relief from the GST reduction.
Tata Motors delivered a standout 47% jump in PV sales to 61,000 units, powered by nearly doubled electric vehicle (EV) sales. Mahindra & Mahindra grew 10% in PV sales, while Hyundai Motor India mirrored that pace with a 10% rise, aided by a 44% export boost. Bajaj Auto delivered a nine per cent rise, buoyed by a 15% jump in three-wheeler exports. TVS Motor grew 12% to 5.41 lakh units, driven by the sustained enthusiasm for its iQube electric scooter, which contributed over 31,000 units.
In the passenger vehicle industry, Volkswagen maintained the top position with 19.2% of all new registrations, followed by Mercedes and BMW. Hero MotoCorp sold about 6.87 lakh units, marking an eight per cent year-on-year rise, with scooters contributing significantly to the recovery. Royal Enfield reported a 43% surge in volumes, crossing 1.24 lakh units, indicating the continued popularity of mid-size motorcycles.
The GST reduction on September 22 led to a swift increase in footfalls and bookings for car dealers across the country, giving potential buyers a reason to purchase before prices adjusted again. Industry executives reported that this cut provided a much-needed boost to the sector, with positive responses from both urban and rural buyers. The surge in tractor sales also indicated a strong rural king demand, driven by better farm incomes and strong monsoon coverage.
Read also:
- C3IC Publishes 'This is the Taiwan We Love' Guide to Empower Citizens
- Reporter of Silenced Torment or Individual Recording Suppressed Agony
- Solar panel troubles on rooftops
- EPA Administrator Zeldin travels to Iowa, reveals fresh EPA DEF guidelines, attends State Fair, commemorates One Big Beautiful Bill
