India’s automobile market showed signs of recovery in September 2025 as festive demand lifted passenger vehicle and two-wheeler sales, according to Citi Research, reported by ANI. Recent GST reductions and increased consumer confidence helped boost sales after a slow August in anticipation of the holiday season, which started on September 22. Although wholesale dispatches were moderate for some automakers due to delayed dealer offtake and logistical issues, retail sales pointed to strong buying interest. Tractor sales were particularly buoyant, driven by rural demand and favourable monsoon prospects.
Two-wheeler makers see gradual rebound
Among major two-wheeler manufacturers, Bajaj Auto reported a 5 per cent year-on-year rise in domestic sales, with a 48 per cent increase month-on-month. Exports remained firm, up 12 per cent year-on-year. TVS Motor posted an 11 per cent growth in total two-wheeler sales, with domestic sales up 12 per cent and electric two-wheeler volumes rising 8 per cent. Hero MotoCorp also saw steady growth, with domestic two-wheeler sales up 5 per cent and overall volumes up 8 per cent year-on-year. The company’s exports nearly doubled, increasing 95 per cent compared to the previous year – a strong turnaround after several months of sluggish shipments.
Passenger vehicle sales pick up pace
Passenger vehicle makers witnessed mixed but encouraging trends. Maruti Suzuki recorded strong retail demand with around 200,000 deliveries and 250,000 pending bookings, according to media reports cited by Citi Research. However, wholesale volumes fell 8 per cent year-on-year, or 6 per cent including Toyota sales, as transport bottlenecks delayed dispatches. These challenges are expected to ease in early October. The company’s exports, meanwhile, rose sharply by 52 per cent, helping offset domestic moderation.Â
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Hyundai Motor India reported a modest 1 per cent rise in domestic sales but saw exports surge 44 per cent year-on-year, showing signs of a gradual rebound.
Mahindra & Mahindra reported 10 per cent growth in utility vehicle sales and a 50 per cent rise in tractor volumes, supported by festive demand during Navratri and improved rural liquidity, though trailer availability remained tight.
Strong show from Tata Motors and Eicher
Tata Motors delivered one of the strongest performances among carmakers, with domestic passenger vehicle sales rising 45 per cent year-on-year. The company also reported steady growth in commercial vehicles, led by a 30 per cent increase in small commercial vehicles and pick-ups. In the commercial segment, Ashok Leyland saw truck sales rise 5 per cent year-on-year, though bus sales dipped 9 per cent.
Eicher Motors reported its highest-ever monthly sales for Royal Enfield, with 124,328 units sold – a 43 per cent jump from the previous year. Larger models above 350cc also saw significant growth despite higher GST rates.
