India’s Automotive Industry Hits Record High
India’s car and SUV sales hit an all-time high in October 2025, crossing the 5.5–5.7 lakh mark in a single month. The growth was driven by GST cuts and festive buying, which brought buyers back to showrooms in record numbers.
Festive Season Fuels a Sales Surge
Showrooms across India saw heavy footfalls during the festive period. Strong consumer sentiment and lower prices encouraged new buyers, particularly in the entry-level car segment. Automakers reported strong performances across all price brackets.
According to early estimates, passenger vehicle retails reached between 5.5 lakh and 5.7 lakh units, marking the highest-ever monthly sales in India’s automotive history.
Maruti Leads the Charge
Maruti Suzuki, India’s largest carmaker, led the record run with retail sales of 2.4 lakh units, up 20% from last year. “Our entry-level models like Alto, S-Presso, WagonR, and Celerio saw a huge demand post-GST cuts,” said Partho Banerjee, Senior Executive Officer (Marketing & Sales) at Maruti.
He added that the company could have sold more if stock levels were higher. “The government’s GST reforms are encouraging two-wheeler users to upgrade to four-wheelers,” Banerjee said. Maruti’s entry-level cars now contribute 20% of total sales, up from 17% earlier.
Tata Motors Records Strong Festive Momentum
Tata Motors also had a strong month, retailing around 75,000 units, a growth of 15%.
“GST cuts and festivities boosted demand. This sets the tone for the rest of the fiscal,” said Shailesh Chandra, MD & CEO of Tata Motors Passenger Vehicles. He added that Tata is gearing up for new launches, including the new Sierra SUV.
Other Automakers Join the Record Wave
Hyundai, Toyota, and Mahindra & Mahindra also saw strong gains, supported by festive buying and new model launches. According to Gaurav Vangaal of S&P Global Mobility, “October 2025 was the highest-ever month for retail car sales in India, supported by pent-up demand and GST-driven buying.”
He noted that companies overcame logistics challenges, including car carrier shortages, to meet the spike in demand.
Luxury Segment Shines Too
Luxury brands also shared the success. Mercedes-Benz reported strong bookings and sales throughout October. “Going by the trends, this should be our best-ever October,” said Santosh Iyer, MD & CEO of Mercedes-Benz India.
Skoda Auto India also marked its highest-ever monthly sales in 25 years, according to Ashish Gupta, Brand Director. He credited the GST reform and network expansion for the milestone.
Exports Add to the Record Month
The momentum wasn’t limited to domestic sales. Maruti Suzuki exported 31,304 units in October 2025 and remains on track to exceed its annual export target of 400,000 units, according to Rahul Bharti, Senior Executive Officer at Maruti.
A Milestone Month for India’s Auto Sector
October 2025 will be remembered as a milestone month in India’s automotive journey. With GST cuts, strong consumer demand, and festive enthusiasm combining, the industry has shown remarkable resilience and growth.
