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Automobile retail industry in India surged to arecord high in October 2025, clocking a 40.5% year-on-year (YoY) growth, as per the latest report by the Federation of Automobile Dealers Associations (FADA). The robust rise was powered by GST 2.0-led affordability, strong festive sentiment, and revive
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India's auto retail sales saw a significant year-on-year growth of 40.5% in October 2025, reaching an all-time high.
The surge was driven by GST 2.0-led affordability, strong festive sentiment, and revived rural demand.
The 42-day festive period from Dussehra to Diwali saw unprecedented momentum, with overall vehicle retails increasing by 21% year-on-year.
Two-wheelers saw a significant increase of 51.8%, followed by passenger vehicles at 11.35%, and commercial vehicles at 17.7%.
Rural India was a key growth engine, with rural passenger vehicle sales growing over three times faster than urban markets and rural two-wheeler sales nearly doubling urban growth rates.
The construction equipment segment saw a decline of 30.5% due to project delays and financing constraints.
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