As the festive season spirit permeates the air, India’s automobile sector is celebrating a significant milestone. September 2025 has officially etched itself into the record books, witnessing the highest-ever monthly sales for passenger vehicles, two-wheelers, and three-wheelers. This surge signals a robust recovery and an optimistic outlook for the industry, fueled by policy tailwinds and burgeoning consumer confidence.
The Numbers Game: A Record-Breaking September
According to data released by the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle (PV) dispatches from manufacturers to dealers soared by 4.4% year-on-year, reaching an impressive 3,72,458 units in September 2025, compared to 3,56,752 units in September 2024. This marks a historic high for the month. The two-wheeler segment wasn’t far behind, clocking a substantial 7% increase to 21,60,889 units, up from 20,25,993 units in the same period last year. Three-wheeler sales also experienced a healthy uptick, rising 5.5% to 84,077 units from 79,683 units.
“In spite of the new GST rates coming into effect only for nine days of the month from September 22, passenger vehicles, two-wheelers and three-wheelers have already posted their highest-ever sales for September,” stated SIAM President Shailesh Chandra.
Brand Power: Who Drove Growth?
While the overall picture is bright, individual brand performances offered a mixed bag:
- Maruti Suzuki: The market leader dispatched 1,32,821 units, holding a 35.1% market share. However, sales saw an 8.38% year-on-year decline from 1,44,962 units in September 2024.
- Tata Motors: Surged ahead, securing the second spot with 59,667 units, a remarkable 45.3% year-on-year increase over 41,065 units in September 2024. Their market share rose to 15.8%. This growth was propelled by strong demand for models like the Nexon, Punch, and the refreshed Harrier-Safari lineup.
- Mahindra & Mahindra: Continued its impressive growth trajectory with 56,233 units, marking a 10.1% year-on-year rise. The company captured a 14.9% market share, with the Scorpio N, XUV700, and Thar remaining key contributors.
- Hyundai India: Reported 51,547 units, exhibiting a marginal 0.87% year-on-year growth, retaining a 13.6% market share.
- Toyota Kirloskar Motor: Saw a healthy 13.8% year-on-year growth, dispatching 27,089 units, securing a 7.16% market share.
- Kia India: Registered 22,700 units, experiencing a 3.5% year-on-year decline.
- Skoda: Was the standout performer in percentage terms, recording an impressive 101% year-on-year growth with 6,636 units sold, boosted by strong response to the Slavia and the new sub-4m SUV Klyaq.
- MG Motor India: Also showed robust growth, with 6,728 units sold, a 46.6% year-on-year increase.
GST Reforms and Festive Cheer
The stellar performance in September 2025 is largely attributed to a confluence of factors unique to the Indian market. The early onset of the festive season, with Navratri commencing late September, spurred consumer spending. More significantly, the positive impact of the new ‘GST 2.0 reforms’, implemented from September 22, helped improve affordability and consumer sentiment. This tax rationalization, even within a short nine-day window, clearly energized buyers.
An Encouraging Outlook
Beyond the monthly figures, the overall outlook for the Indian auto sector remains encouraging. SIAM anticipates the industry to close the fiscal year on a positive growth trajectory, buoyed by sustained festive momentum, stable macroeconomic conditions, and the positive impact of policy support like GST 2.0. While global geopolitical developments remain a watchpoint, improved rural demand, supported by a healthy monsoon and crop yields, is also expected to contribute to continued growth in two-wheelers and other segments. You can explore India’s passenger vehicle sales trends over the years here.
Full Speed Ahead?
September 2025 has certainly proven that when it comes to vehicles, Indians are not just buying, they’re celebrating. The record-breaking sales underscore a buoyant market, eager to hit the road – hopefully, on a new set of wheels. The industry, it seems, has found its sweet spot between policy support and festive fervor, setting a strong pace for the quarters to come.
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