According to a report by ICICI Securities, domestic automobile industry recorded a strong rebound in September 2025. The wholesale volumes exceeding expectations across all major vehicle segments. This improvement in demand came after the Goods and Services Tax (GST) cut on September 22, which boosted retail and wholesale sales across the sector.
In the two-wheeler segment, Hero MotoCorp registered a year-on-year growth of eight per cent and sold around 6.87 lakh units, led by strong scooter sales. TVS Motor registered a growth of 12 per cent to 5.41 lakh units, including over 31,000 iQube electric scooters, reflecting the continued growth in the electric vehicle segment.
Bajaj Auto’s total sales rose nine per cent to 511,000 units, including a 15 per cent increase in three-wheeler exports. Sales at Eicher Motors-owned Royal Enfield beat expectations, rising 43 per cent to 124,000 units.
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Passenger vehicle manufacturers also performed well, although some faced supply chain issues. Maruti Suzuki reported a three per cent annual growth with sales of 1.9 lakh units, impacted by logistics constraints, though exports grew by 52 per cent. Mahindra & Mahindra’s PV sales rose 10 per cent, while Tata Motors’ sales rose 47 per cent to 61,000 units, with electric vehicle sales nearly doubling. Hyundai Motor India also performed well with an overall growth of 10 per cent led by export growth of 44 per cent.
Commercial vehicles continued their recovery path. Tata Motors’ commercial vehicle sales rose 19 per cent to 36,000 units, helped by increased sales of heavy and light trucks. Ashok Leyland’s total commercial vehicle sales grew by nine per cent, while Mahindra & Mahindra’s light commercial vehicles grew by 18 per cent.
Tractors performed well across all segments, registering a 49 per cent year-over-year increase. Mahindra & Mahindra sold nearly 66,000 tractors, and Escorts came in second with 18,000 tractors, both well ahead of expectations.
ICICI Securities noted that the overall performance signals “a healthy demand revival across segments led by festive buying and the GST rate cut.”
With ANI Inputs
