Diwali demand powers auto sales to all-time October high; PVs up 17%, 2Ws cross 22 lakh

Buoyed by robust Diwali-season buying, India’s automobile industry posted its strongest-ever October performance, with wholesale dispatches across segments touching new highs. Passenger vehicles surged 17% year-on-year, while two-wheeler sales crossed the 22-lakh mark, reflecting a sharp revival in festive consumer sentiment. According to data released by the Society of Indian Automobile Manufacturers (SIAM), total industry production across passenger vehicles, two-wheelers, three-wheelers and quadricycles reached 28,01,412 units in October 2025—a record for the month. 

The festive season boost, combined with the impact of recent GST rate cuts, helped automakers deliver their highest-ever monthly dispatches to dealerships despite logistical challenges.

Passenger vehicles (PVs) continued to lead the industry’s recovery, with domestic sales rising to 4,60,739 units, up 17.2% from 3,93,238 units in October 2024. SIAM noted that the strength in PV demand was broad-based, supported by new model launches and a shift in consumer sentiment following the tax reduction effective September 22.

Two-wheelers, the largest automotive segment by volume, saw domestic sales rise to 22,10,727 units, a growth of 2.1% year-on-year. Scooters were the standout category, registering a strong 14.3% jump with sales at 8,24,003 units. Motorcycles, however, witnessed a decline of 4%, falling to 13,35,468 units, while moped sales dipped by 2.1% to 51,256 units.

Three-wheelers also reported healthy performance, with total domestic sales climbing 5.9% to 81,288 units in October 2025. Within this category, passenger carriers grew 7.6% and goods carriers rose 2.8%, even as electric rickshaw volumes declined by 27.2%, indicating uneven traction in the small commercial EV space.

Commenting on the monthly performance, Rajesh Menon, Director General of SIAM, said the festive season significantly boosted buying sentiment. “Passenger Vehicle, Two and Three-Wheeler segments posted their highest ever dispatches to dealers in October, primarily buoyed by the festive demand and the recent GST rate reduction, despite being constrained due to certain logistic limitations,” he noted. He added that vehicle registrations saw a notable rise as customers advanced purchases to take advantage of lower tax rates.

Data shared by SIAM also highlighted that without Tata Motors (whose detailed data was unavailable), total passenger vehicle sales would have been 3,99,605 units in October 2025 compared with 3,45,107 units in the previous year—still reflecting strong double-digit growth.

Industry experts believe the October performance offers an encouraging backdrop for the ongoing quarter, especially for mass-market categories. The GST cuts are expected to support value-driven purchases, particularly in the two-wheeler and entry-PV segments, which had seen subdued recovery over the past two years.

However, SIAM cautioned that global geopolitical tensions, freight disruptions, and supply-side constraints could create short-term volatility. Despite this, the domestic market’s resilience—powered by festive demand, improved financing availability, and steady rural sentiment—is likely to keep overall volumes on an upward trajectory.