The automobile industry on Wednesday said the sector expected to close the fiscal year in a positive growth trajectory while it remains watchful of geopolitical developments.

The rollout of GST 2.0 reforms, coupled with income tax relief to common taxpayers is expected to sustain buying interest across all vehicle segments through the festive and post-festive months, Society of Indian Automobile Manufacturers (SIAM) said.

“In spite of the new GST rates coming into effect from September 22, i.e. only for 9 days of the month, passenger vehicles (PVs), two-wheelers (2Ws) and three-wheelers (3Ws) have already posted their highest-ever sales of September. In addition, very strong exports growth, in all segments in Q2, indicates the growing brand acceptance on Indian made vehicles. Looking ahead, the outlook for the sector remains encouraging on the back of key tailwinds,” Shailesh Chandra, President, SIAM, said.

Landmark decision

The GST 2.0 reform is a landmark decision of the government, which apart from catapulting the Indian auto industry to the next level, would bring in vibrancy in the entire economy, as this industry is closely intertwined with strong forward and backward linkages, he added.

Indian automobile industry enters the second half (H2) of FY2025–26 with renewed cheer, supported by strong festive season momentum, stable macroeconomic conditions, and GST 2.0 reforms that have improved overall affordability and consumer sentiment, SIAM said.

On monthly domestic wholesales (dispatches to dealers), SIAM reported that the total PV sales grew by 4.4 per cent year-on-year (y-o-y) to 3,72,458 units during September, against 3,56,752 units in the corresponding month last year.

Similarly, the 2W sales grew by 6.7 per cent y-o-y to 21,60,889 units in September as compared with 20,25,993 units in the same month last year. While the motorcycle sales grew by 5.8 per cent y-o-y to 13,73,750 units during the month (vs 12,98,610 units in September 2024), the scooter sales grew by 9 per cent y-o-y to 7,33,391 units (vs 6,72,414 units in same month last year).

The total 3W sales grew by 5.5 per cent y-o-y to 84,077 units last month as against 79,683 units in September 2024.

PV sales decline

In terms of quarterly numbers, the total PV sales in the second quarter (Q2) declined by 1.5 per cent y-o-y to 10,39,200 units as compared with 10,55,137 units in April-September period last year.

However, 2W sales grew by 7.4 per cent y-o-y to 55,62,077 units during Q2 this year as compared with 51,79,349 units in the corresponding period last year. Motorcycle sales grew by 5 per cent y-o-y to 33,70,495 units in July-September (against 32,09,965 units last year same period) and scooters sales grew by 12.4 per cent y-o-y to 20,59,957 (vs 18,32,306 units in July-September 2024), the SIAM report indicated.

Total commercial vehicles grew by 8.3 per cent y-o-y to 2,39,781 units during the Q2 as compared with 2,21,463 units in Q2 2024.

Total three-wheeler sales grew by 9.8 per cent y-o-y to 2,29,239 units from 2,08,718 units in Q2 last year.

The grand total of all vehicles sales grew by 6 per cent y-o-y to 70,70,29 units during the July-September period as compared with 66,64,695 units in the same period last year.

Published on October 15, 2025