India's September passenger-vehicle sales jump 21% on GST cut and strong demand
Domestic passenger-vehicle wholesales in India rose 21.4% year-on-year to 463,081 units in September, helped by a low base after GST rate changes.
India’s domestic passenger-vehicle market recorded 463,081 units sold in September, up 21.4% from a depressed September 2025 base that was affected by announced GST changes. The tax reduction - 18% for small cars and a flat 40% for larger vehicles - took effect on September 22, prompting a sales surge that aligned with the Navratri festival. Maruti Suzuki posted the strongest performance, delivering 181,838 units, a 36.9% increase year-on-year, driven by strong hatchback, sedan and CNG model demand.
Tata Motors reported a 15.3% rise to 68,810 units, highlighting rapid EV growth, while Mahindra & Mahindra and Hyundai Motor India each posted gains of 14% and 10.9% respectively. Industry executives expect continued momentum through the festive season, with overall annual volume projected at 5.3-5.4 million units.
Why it matters
The surge signals a rebound in India’s auto market, influencing manufacturers, suppliers and the broader economy.
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