While registrations rose over 20% during the first 17 days from Navratri, registrations remain muted in the first 43-day period from Ganesh Chaturthi.
09 Oct 2025 | 1610 Views | By Kiran Murali
Underlining the strong demand momentum with the Goods and Services Tax (GST) rate cut and peak festival season, registrations of passenger vehicles, two-wheelers, and light commercial vehicles (LCV) recorded over 20% growth during the first 17 days from Navratri.
According to data from VAHAN, two-wheeler registrations increased by 21% ...
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Underlining the strong demand momentum with the Goods and Services Tax (GST) rate cut and peak festival season, registrations of passenger vehicles, two-wheelers, and light commercial vehicles (LCV) recorded over 20% growth during the first 17 days from Navratri.
According to data from VAHAN, two-wheeler registrations increased by 21% between September 22 and October 8, reaching 13.29 lakh units, compared to the same 17 days in the year-ago period. The passenger vehicle segment recorded the highest growth of 23% to 3.05 lakh units, while LCVs saw a 21% increase to 37,779 units.
September 22 marked the beginning of both the Navratri season and the effective date for the new, reduced GST rates. Consumers responded to the improved affordability created by the tax reduction, leading to record-breaking sales. This surge was intensified by the pent-up demand that accumulated after PM Modi indicated taxes would be lowered, alongside the traditional excitement of the festival season.
"The first three weeks [of September] were largely muted, with customers holding back in anticipation of the GST 2.0 reforms. However, the dynamics changed dramatically in the final week as Navratri festivities coincided with the implementation of lower GST rates, reviving customer sentiment and accelerating deliveries across most vehicle categories," said FADA Vice President Sai Giridhar.
He noted that the unprecedented momentum was broad-based, with every major segment contributing to the surge. Better affordability, festive promotions, and the conversion of pent-up demand into actual sales are reflected in the sales as new buyers entered the market and existing customers traded up to premium variants.
Although registrations during the Navratri period saw strong growth, the overall figures for the wider festival season – from Ganesh Chaturthi to the present - have been muted. This initial slowdown was caused by potential customers delaying their purchases while they awaited the rollout of the lower GST rates.
Two-wheeler registrations during the first 43 days of the festive season, starting from Ganesh Chaturthi [August 27 to October 8], rose marginally by 1% to 21.54 lakh units, while passenger vehicle registrations were nearly flat at 4.83 lakh units, according to Vahan data. LCVs saw a 5% increase to 70,969 units.
The festival season in India starts with Ganesh Chaturthi or Onam in Kerala towards the August end or September beginning and extends till Bhai Dooj after Diwali, in November across the majority of the states. The period from the end of Shradh to Diwali is considered the peak festival season.
The tax cuts have significantly boosted both affordability and consumer confidence across all income segments. As a result, vehicle manufacturers and dealers are confident the auto sector will achieve its best-ever sales during this peak festival season. This is also supported by favorable conditions that have boosted purchasing power in both rural and urban areas—specifically, above-normal monsoon rains, a robust Kharif harvest and stable policy rates.