New Delhi, Oct 7 (NationPress) India’s automobile sector has achieved its highest sales growth ever during the Navaratri festival from September 22 to September 30, with a remarkable 34 percent year-on-year (YoY) increase, as reported by the Federation of Automobile Dealers Association on Tuesday.

Sales of passenger vehicles surged by 34.8 percent, while two-wheeler sales saw a rise of 36 percent, largely attributed to the impact of GST reforms. Overall, sales in September experienced a growth of 5.22 percent, totaling 18,27,337 units, compared to 17,36,760 units in the same month last year, despite a slowdown in sales until September 21.

The report highlights that the positive momentum observed in the last days of September is likely to extend into Deepawali, indicating a promising conclusion to the 42-day festive season. Auto dealerships are currently witnessing an increase in inquiries and bookings across various segments, including two-wheelers, passenger vehicles, and commercial fleets.

If the logistics and transportation systems function effectively, this festive retail season could be the most successful India has ever experienced, with supply chains aligning with the nation’s celebratory demand, according to the report.

In the two-wheeler segment, sales rose by 6.1 percent, reaching 12,87,735 units in September, compared to 12,08,996 units in the same month last year. Sales of personal vehicles increased by 5.81 percent, totaling 2,99,369 units, compared to 2,82,945 units in September 2024.

The reduction in GST rates, combined with festive demand, has stimulated renewed inquiries and bookings. However, limited billing days have hindered the full potential of this rebound, as stated in FADA's report.

A consistent pattern emerged across segments—retail remained subdued until September 21, followed by a spike once the GST 2.0 reforms were implemented.

“Navratri 2025 will be remembered as a significant milestone in India’s automobile retail history—a true ‘Bachat Utsav’ inspired by the visionary GST 2.0 reform introduced by Prime Minister Narendra Modi,” said FADA Vice President Sai Giridhar.

As dealerships took this opportunity to replenish their inventory, stock levels for the passenger vehicle segment increased to approximately 60 days, according to the report.

Conversely, in September, sales of three-wheelers and commercial equipment vehicles experienced declines of -7.20 percent and -19 percent, respectively.