The month of September saw a rise in the dispatch of passenger vehicles from companies to dealers, said industry body, Society of Indian Automobile Manufacturers (SIAM).
In its data released on Wednesday, the body said even though the GST overhaul had taken effect from September 22, it helped push vehicle sales more in the nine days of the month.
The passenger vehicle dispatches rose 4 per cent year-on-year to 3,72,458 units in September, 2025, as against 3,56,752 units in September, 2024, the data revealed.
“The Indian automobile industry enters the second half of 2025-2026 with renewed cheer, supported by strong festive season momentum, stable macroeconomic conditions, and GST 2.0 reforms that have improved overall affordability and consumer sentiment,” the industry body said.
“While the industry remains watchful of geopolitical developments, the overall outlook for the rest of the current financial year remains encouraging, with the sector expected to close the fiscal year on a positive growth trajectory,” it added.
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Two-wheeler sales, meanwhile, surpassed passenger vehicle sales, witnessing a 7 per cent on-year rise to 21,60,889 units last month, as compared to 20,25,993 units in the year-ago period, the auto body said.
Total three-wheeler dispatches also saw an increase, rising to 84,077 units last month, an increase of 5.5 per cent, as compared to 79,683 units in the same month the previous year.
“In spite of the new GST rates coming into effect from September 22, i.e. only for 9 days of the month, passenger vehicles, two-wheelers and three-wheelers have already posted their highest-ever sales of September,” said SIAM President, Shailesh Chandra.
The forecast for vehicle sales also looks promising, he added.
“The GST 2.0 reform is a landmark decision of the government, which, apart from catapulting the Indian auto industry to the next level, would bring in vibrancy in the entire economy, as this industry is closely intertwined with strong forward and backward linkages,” Chandra stated.
In the July-September quarter, however, passenger vehicle sales had shown a drop of 1.5 per cent, standing at 10,39,200 units as compared to 10,55,137 units in the same quarter of last fiscal.
In the same period, two-wheeler sales witnessed a steady growth of 7 per cent year-on-year to 55,62,077 units, as compared to the July-September quarter of the previous fiscal year.
Three-wheeler dispatches to dealers also saw a growth of 10 per cent year-on-year to 2,29,239 units in the previous quarter, SIAM said.
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