India’s Auto Industry Shifts Into High Gear with Record October 2025 Performance

The auto industry witnessed a notable surge in demand across major vehicle categories, driven largely by the festive season and the GST rate reduction implemented in late September, according to numbers from Society of Indian Automobile Manufacturers (SIAM). Despite some logistical constraints affecting supply chains, overall industry activity remained robust.

Total production of passenger vehicles, three-wheelers, two-wheelers and quadricycles reached 28,01,412 units, underscoring the momentum that manufacturers carried through the festive period. In the domestic market, passenger vehicles stood out prominently. Dispatches rose from 3,93,238 units in October 2024 to 4,60,739 units in October 2025, reflecting a healthy growth rate of 17.2 percent. This marked the highest-ever dispatch of passenger vehicles to dealers for the month of October, demonstrating strong consumer sentiment and an enthusiastic response to festive offers.

The three-wheeler segment also showed positive movement, with dispatches increasing to 81,288 units. Growth was primarily supported by higher demand for both passenger and goods carriers, although electric variants such as e-rickshaws and e-carts experienced a decline compared to the previous year.

Two-wheeler shipments experienced moderate growth, reaching 22,10,727 units, a 2.1 percent rise from last year. Within the segment, scooters emerged as the strongest performer, recording a significant increase in demand. Motorcycles and mopeds, however, saw a slight decline, suggesting a shift in consumer preference, particularly in urban regions where scooters continue to gain popularity.

Speaking about the month’s performance, SIAM Director General Rajesh Menon highlighted that the festive demand played a crucial role in pushing sales upward. The GST rate reduction, which became effective from 22nd September 2025, further encouraged buyers and contributed to a sharp rise in vehicle registrations across several segments. Although logistical challenges persisted, they did little to dampen the overall retail momentum, which outpaced wholesale figures in many categories.

Overall, October 2025 emerged as a milestone month for the Indian automobile industry. Strong consumer sentiment, supportive policies and a vibrant festive season helped the sector achieve record-breaking numbers in passenger vehicles while maintaining steady progress in two- and three-wheelers. As the industry moves toward the end of the year, the positive trajectory suggests continued growth and resilience.