Mahindra Breaks Two Auto Sales Records in September

Mahindra & Mahindra Ltd. reported its highest-ever monthly domestic passenger vehicle sales in September 2025, with 56,233 units sold, surpassing the previous record of 54,504 units achieved in October 2024. The milestone marks a 10% year-on-year growth compared to September 2024's sales of 51,062 units.

The record performance propelled the company's overall auto sales, including exports, to 100,298 vehicles for the month, representing a 16% growth. With total UV sales including exports reaching 58,714 units, Mahindra demonstrated strong momentum across both domestic and international markets.

The company's record-breaking performance came amid favorable market conditions created by the convergence of multiple factors. Nalinikanth Gollagunta, CEO of Mahindra's Automotive Division, highlighted the impact of GST 2.0 reforms and the timing of the Navratri festival, which fell in September this year compared to October last year.

"Thanks to the impetus from GST 2.0 and the preceding weeks' pent-up demand, we have seen robust growth in dealer reported customer retails during the first nine days of Navratri, with over 60% growth in the SUV segment," Gollagunta stated in the company's announcement.

The GST 2.0 reforms, implemented on September 22, 2025, reduced tax rates on small cars from 28% to 18%, eliminating the compensation cess. This development followed widespread speculation that prompted many prospective buyers to delay their purchases in the preceding weeks. The reforms affected compact SUVs with petrol engines up to 1,200cc and diesel engines up to 1,500cc, with vehicle lengths not exceeding 4,000mm. Mahindra passed on the full GST benefits to customers, with models in its lineup seeing price reductions exceeding Rs 1 lakh.

October 2024 had marked Mahindra's previous monthly sales peak, when the company sold 54,504 SUVs domestically, representing a 25% year-on-year growth and total volumes of 96,648 vehicles. That performance was driven by models like the Scorpio-N and XUV700, as well as the recently launched Thar Roxx and updated XUV3XO, with September 2024 marking the first time Mahindra's monthly SUV sales had surpassed 50,000 units.

Despite achieving record sales, Mahindra indicated that its performance could have been even stronger without logistical challenges. The company noted that billing numbers were subdued due to limited availability of trailers in the last 10 days of September, which constrained vehicle dispatches to dealers.

"The surge in festive demand has placed significant constraints on availability of trailers. We are working to improve dispatches to our dealer network within the constraints," Gollagunta said.

The record September sales represent a sharp rebound from the subdued performance in August 2025, when major passenger vehicle manufacturers, including Mahindra, experienced sales declines. The trigger behind the August drop was widespread speculation that the government was evaluating slashing GST on small cars, leading many prospective buyers to delay their purchases while dealers cut back on stocking vehicles.

The September figures confirm that this delayed demand materialized strongly once the reforms were implemented on September 22 and the festive season commenced. The early arrival of Navratri in September, combined with the tax benefits, contributed to the surge in retail activity during the month.

Demand Concerns Persist

Despite the strong shipment data, largely influenced by a decision by Mahindra to shift shipments to September from August, other indicators point to persisting weak retail sales.

According to Vahan retail data, for example, Tata Motors came in second in retail sales, outpacing both Mahindra & Mahindra and Hyundai Motor India with 40,594 units sold, overtaking Mahindra's 37,015 units and Hyundai's 35,443 units.

Back to shipments, for the fiscal year to date through September, Mahindra has sold 297,570 domestic passenger vehicles, up 14% compared to 260,210 units in the corresponding period of the previous fiscal year. This sustained growth trajectory positions the company favorably for the remainder of the festive season.

In September, Mahindra's commercial vehicles business also recorded strong growth, with domestic sales of 26,728 units representing an 18% increase. The light commercial vehicle segment (2T-3.5T category) grew 21% to 23,342 units, while three-wheelers, including electric variants, surged 30% to 13,017 units. Gollagunta noted that the CV segment also saw over 70% growth in dealer retails during the first nine days of Navratri compared to the same period last year.

Export operations grew 43% to 4,320 vehicles in September, with year-to-date exports reaching 20,303 units, up 38% from 14,680 units in the corresponding period last year.

Founded in 1945, Mahindra & Mahindra is one of India's leading automotive manufacturers with a presence in utility vehicles, farm equipment, and commercial vehicles. The company is part of the Mahindra Group, which operates across more than 100 countries with approximately 260,000 employees globally.