Vehicle registrations up 32% on-year in September
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As per data collated by Federation of Automotive Dealers’ Associations (FADA), passenger vehicles, two-wheelers and commercial vehicles retails rose 33%, 32% and 38%, respectively in the month under review.
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Loading...×Vehicle registrations across categories - a proxy for retail sales - rose 32% year-on-year to 2,536,920 units in September, albeit on a low base, supported by improved affordability among consumers since the GST reset last year.As per data collated by Federation of Automotive Dealers’ Associations (FADA), passenger vehicles, two-wheelers and commercial vehicles retails rose 33%, 32% and 38%, respectively in the month under review.
FADA President Sai Giridhar said, while retails last month were the best-ever reported for the month of September, the growth comes on a low base of last year when buyers deferred purchases in the week before GST 2.0 took effect on 22 September 2025. “The real year-on-year test now lies in October, which laps last year’s GST-fuelled festive surge”, Giridhar said.
Also read | Two-wheelers, EVs power September auto sales as festive demand picks up
In the two-wheeler segment, growth was even across rural and urban markets last month. Ditto, passenger vehicles where rural and urban markets grew at a similar pace, at 32%. The share of electric in the two-wheeler segment stood at about 12% in the month under consideration, and those of alternate powertrains (hybrids, EVs and CNG) at 41% in PV sales in the same period.
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Commercial vehicles retails, meanwhile, crossed the one-lakh mark in a September for the first time. Sales of commercial vehicles grew by 40% in rural markets outpacing growing of 35% seen in urban centres. Dealers attributed the strong momentum to continuing benefits of GST 2.0 and replacement demand, pick-up in infrastructure and mining activity spurring bulk fleet purchases for steel and cement movement, higher rural incomes, buying ahead of the October price increase and the usual half-year-close spike.
Three-wheelers recorded their best-ever September with EV penetration at 64.90%. Tractors sales grew 13.75% YoY but fell 12.58% MoM, on back of a weak monsoon.
Total EV retails across categories reached an all-time monthly high of about 3.34 lakh units, taking overall EV penetration to roughly 13%, FADA said.
Also read | India luxury car sales rise in double digits; Mercedes-Benz sales grow 8% to record 15,190 units
One year on from GST 2.0, affordability remained the single engine of this growth cycle, dealers said, flagging that further price increases will erode that very affordability and pose a risk to growth in the quarter ahead. “Protecting the GST gain is, to our mind, the key to converting the festive season into durable growth”, Giridhar said.
Dealers expect October to deliver the festive pick-up that September deferred with Navratri (11–20 October) and Dussehra. Demand held back during Pitru Paksha should convert into a concentrated burst of deliveries from mid-month even if the first ten days are subdued, they said.
Two-wheelers are expected to see stronger booking-to-retail conversion on auspicious days, supported by rural cashflows, easier finance and rising interest in EVs. In the passenger vehicle segment pending bookings are expected to convert through Navratri and Dussehra, aided by fresh launches and festive schemes. Demand for commercial vehicles too are expected to stay supported by increased freight movement, infrastructure development projects and a healthy enquiry pipeline.
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Figures reflect the source report and its stated period. This article is for information and is not investment advice.
