September 2025 Car Sales – Snapshot

India’s passenger vehicle market rose about 5.5% year-on-year and was driven largely by festive demand and tax reforms. Sales remained cautious ahead of the GST rate revision implementation (before September 22, 2025) and opened up during the Navratri season. The industry recorded dispatches of 3,78,457 units, primarily due to dealers reportedly building up inventory ahead of the festival season, in anticipation of increased demand.

GST tax cuts proved to be the tipping point, and the reforms have reduced effective tax burdens on various vehicle segments, making models more affordable. Many potential buyers seem to have deferred purchases earlier in Sep'25, waiting for the new tax regime. After the cut, demand surged, especially during the Navratri window, and customers were piling up to take the pent-up deliveries. India’s festival cycle (Navratri followed by Dhanteras / Diwali) is traditionally a strong period for consumer durable purchases, including vehicles. In October 2025, this seasonal uplift coincided with favorable pricing, making consumers more willing to upgrade or buy new.

• Maruti Suzuki posted a drop of 8.4% in domestic sales for September 2025 vs the same period last year. It lost considerable Market Share and reported just 35.1% Market Share in Sep'25.

• Tata Motors bounced back to the No.2 position in Sep'25 with a YoY growth of 45.3% and a 45.5% growth vs last month. It also achieved its best-ever monthly PV sales! Almost 87% of Tata Motors ICE portfolio attracts the lower GST slab, and the impact is strongly visible.

• Mahindra & Mahindra ranked third in the table and registered over 10% YoY growth and >42% MoM growth.

• Hyundai Motor India saw SUVs dominate its sales mix, and its Creta model achieved an all-time high monthly volume. However, it slipped to the fourth spot and recorded a flat YoY growth.