Just three states accounted for 30% of all auto sales in India in July-September 2025, underscoring the demand trends in these geographies even before GST 2.0 reduced prices of scooters to SUVs.
A total of 10.39 lakh cars and 55.62 lakh two-wheelers were sold in the second quarter of the ongoing fiscal, according to data released by the Society of Indian Automobile Manufacturers on Tuesday (18 November 2025).
Among the states, Maharashtra clocked the highest car sales with 1.32 lakh units, or 12.7% of all cars sold during the quarter. Uttar Pradesh accounted for the most number of two-wheelers sold—6.93 lakh units equivalent to 12.5% of total sales, according to SIAM data.
What was notable, however, was vehicular demand in Gujarat—the state ranked consistently among the Top 3 markets, irrespective of the number of wheels. The state accounted for 8.5% of all cars, 8.0% of all two-wheelers, 9.8% of all three-wheelers, and 9.4% of all commercial vehicles sold during Q2 FY26.
Auto sales in Q2 FY26
To be sure, car sales in India actually fell in Q2 FY26 as customers delayed purchases until the implementation of GST rate cuts on 22 September. The government’s move to rationalise the indirect tax into two slabs from four has reduced GST on small cars to 18% and GST on SUVs to 40%.
Dispatches to dealerships from the factory floor fell 1.5% year-on-year to 10.40 lakh units in Q2 FY26, even as two-wheeler sales increased 7.4% to 55.6 lakh units, according to SIAM data.
“Inspite of the new GST rates coming into effect from Sept. 22, i.e. only for nine days of the month, cars, two-wheelers and three-wheelers already posted their highest ever sales of September,” SIAM President Shailesh Chandra had said on 15 October.
The GST impact showed in October’s sales figures.
Auto sales in October 2025
Auto sales—measured as dispatches to dealerships from the factory floor—rose 17.2% year-on-year to 4,60,739 units in Octobrer 2025, as automakers stocked up their retail touchpoints to cater to GST 2.0-fuelled demand. Two-wheeler sales rose 2.1% to 21,64,276 units as dealerships were already stocked with inventory.
A bigger indicator for the outsized demand was retail sales—measured as vehicle registrations on the government’s VAHAN website.
Retail auto sales—across vehicle types—surged 40.5% year-on-year to an all-time high of 40,23,923 units in October 2025, as against 28,63,354 units in the year-ago period, according to data released by the Federation of Automobile Dealers Association. Here’s a breakdown of the numbers:
- 2W sales up 51.76% YoY/144.60% MoM at 31,49,846 units
- 3W sales up 5.43% YoY/31.00% MoM at 1,29,517 units
- Car sales up 11.35% YoY/86.18% MoM at 5,57,373 units
- CV sales up 17.69% YoY/49.52% MoM at 1,07,841 units
“October 2025 will be remembered as a landmark month for India’s auto retail, where reforms, festivities, and rural resurgence came together to deliver record-breaking sales,” FADA President C.S. Vigneshwar said.
“After an almost quiet September for first 21 days due to the GST transition, October witnessed a swift rebound—almost like a hurdle race where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels.”