Festive demand, GST cuts lift Navratri car sales 35%, overall retails up 6%

Indian automobile showrooms turned into bustling hubs of activity this Navratri, as the long wait for festive buying and the government’s GST 2.0 rollout collided to create the perfect storm of consumer enthusiasm. After a quiet start to September, the country’s auto retailers witnessed a dramatic turnaround, with passenger vehicle sales soaring 35 per cent year-on-year during the nine-day Navratri period, according to data from the Federation of Automobile Dealers Associations (FADA).

Overall registrations for the month climbed 6 per cent to 18.27 lakh units, marking a decisive rebound in sentiment that dealers say could extend through Diwali. “The first three weeks of September were unusually muted as customers waited for the new GST rates. But when Navratri and GST 2.0 arrived together, the industry came alive," said FADA Vice President Sai Giridhar.

Passenger vehicles find fresh momentum

For carmakers and dealers, the festive surge couldn’t have come at a better time. Passenger vehicle (PV) retails rose to 2.99 lakh units in September, up 6 per cent from a year ago. But the real celebration unfolded during Navratri itself, when PV sales jumped to 2.17 lakh units, compared to 1.61 lakh units last year.

Showrooms that had seen subdued footfalls in early September suddenly reported packed schedules, test drives running late into the evening, and brisk deliveries. Dealers credited the turnaround to reduced GST rates and aggressive festive offers that made vehicles more affordable across segments. “Customers who had postponed purchases due to uncertainty found new confidence in the revised pricing," FADA said.

Two-wheelers back in the fast lane

The Indian two-wheeler market, often a barometer for rural demand, also regained its spark. Retail sales climbed 7 per cent in September to 12.87 lakh units, with Navratri sales soaring 36 per cent year-on-year to 8.35 lakh units.

The combination of price cuts, exchange bonuses, and better monsoon-linked rural sentiment translated into long queues at motorcycle and scooter outlets. FADA noted that many first-time buyers and young professionals returned to the market, buoyed by improved affordability and easy finance.

Commercial vehicles steady, but optimistic

The commercial vehicle (CV) segment, too, joined the recovery, albeit modestly. Retail sales rose 3 per cent year-on-year to 72,124 units, while Navratri sales jumped 15 per cent to 33,856 units. Dealers reported renewed traction from fleet operators and logistics companies, spurred by festive logistics needs and stable freight rates.

While infrastructure-linked demand remains uneven, the overall sentiment has turned positive, with expectations that post-Diwali movement of goods will sustain this uptick.

Tractors plough ahead with rural push

India’s farm equipment market also joined the festive celebration. Tractor retails rose 4 per cent in September to 64,785 units, while Navratri sales jumped 19 per cent year-on-year to 21,604 units. With above-normal monsoon rains and a healthy kharif harvest, rural purchasing power has stayed strong, lending steady support to tractor sales.

Dealers in agrarian regions say that government support schemes and timely finance disbursements have further boosted confidence among farmers.

A festive season like no other

FADA believes this could be India’s most vibrant 42-day festive stretch yet. The alignment of GST rate cuts, better farm income, and stable policy rates has created a rare moment of optimism. “Affordable prices post-GST 2.0, coupled with strong consumer sentiment, have drawn both first-time buyers and upgraders to showrooms," FADA said.

If supply chains hold steady, this Diwali could mark one of the best retail performances the Indian auto industry has ever seen, turning the festival of lights into a true celebration of renewed mobility across the country.

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