India's Car Sales Bounce Back: Wholesale Volumes Exceed Forecasts

India's automobile industry saw a significant rebound in September 2025, with wholesale volumes surpassing expectations across all segments. An ICICI Securities report attributes this revival to a recent GST rate cut and festive buying.

India's automobile industry recorded a strong rebound in September 2025, with wholesale volumes across all major vehicle segments surpassing expectations, according to a report by ICICI Securities. The demand revival came after the Goods and Services Tax (GST) reduction on September 22, which lifted both retail and wholesale momentum across the sector.

In the two-wheeler segment, Hero MotoCorp posted an eight per cent year-on-year increase with around 6.87 lakh units sold, supported by strong scooter sales. TVS Motor registered a 12 per cent rise to 5.41 lakh units, including over 31,000 iQube electric scooters, reflecting continued growth in the electric vehicle space. Bajaj Auto's total volumes grew nine per cent to 5.11 lakh units, aided by a 15 per cent rise in three-wheeler exports. Royal Enfield, owned by Eicher Motors, recorded a 43 per cent jump to 1.24 lakh units, exceeding expectations.

Passenger vehicle makers too delivered a strong show, although some were hit by supply chain issues. Maruti Suzuki reported a three per cent annual rise with 1.9 lakh units sold, affected by logistics constraints, though exports surged 52 per cent. Mahindra & Mahindra's PV volumes grew 10 per cent, while Tata Motors clocked a 47 per cent jump to 61,000 units, boosted by nearly doubling its electric vehicle sales.

Hyundai Motor India also performed well with a 10 per cent overall increase, driven by export growth of 44 per cent.

Commercial vehicles maintained their recovery path. Tata Motors' CV volumes rose 19 per cent to 36,000 units, supported by higher heavy and light truck sales. Ashok Leyland's total CV volumes grew nine per cent, while Mahindra & Mahindra's light commercial vehicles posted an 18 per cent increase.

Tractors outperformed all segments, registering a 49 per cent year-on-year surge. Mahindra & Mahindra sold around 66,000 units, and Escorts followed closely with 18,000 units, both significantly ahead of expectations.

ICICI Securities noted that the overall performance signals “a healthy demand revival across segments led by festive buying and the GST rate cut.”

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