Auto Retail Grows 5.2% YoY In September; Navratri Sales Surge 34%

India’s automobile retail sector posted a 5.22% year-on-year growth in September 2025, with total vehicle registration reaching 18,27,337 units, up from 17,36,760 units in  the same month last year, according to data released by the Federation of Automobile Dealers Associations.

Passenger vehicles clocked a 5.80% YoY growth, retailing 2,99,369 units compared to 2,82,945 units last September. Two-wheelers continued to dominate volumes, registering 12,87,735 units, a 6.51% increase over last year’s 12,08,996 units.

FDA notes that “above-normal monsoon rains, a strong kharif harvest, and stable policy rates have boosted purchasing power”, setting the stage for good sales during Dhanteras and Deepawali.

Dealerships are already witnessing “surging enquiries and bookings across two-wheelers, passenger vehicles, and commercial fleets”, with first-time buyers and upgraders alike drawn in by aggressive OEM offers and easy financing. If supply chains hold up, this festive season could mark “the best retail performance India has ever seen.”

Retail momentum was high during Navratri, with overall vehicle registration jumping 34.01% YoY to 11,56,935 units. Passenger vehicles led the charge with a 34.87% increase, followed closely by two-wheelers at 35.95%. Commercial vehicles and tractors also posted double digit growth, reflecting broad-based demand.

Liquidity conditions are also favourable, with 56.15% of respondents reporting a “Good” liquidity environment.

From April to September 2025, total vehicle retail sales across India stood at 1,23,48,306 units, up 3.42% from 1,19,39,890 units in the same period last year. Tractors led the growth charts with a 10.68% increase, followed by the three-wheelers at 3.86%, and passenger vehicles at 3.67%.

Electric vehicles continue to gain traction, especially in the three-wheeler segment where they accounted for 61.74% of total sales in September. In two-wheelers, EVs made up 8.09% up from 7.49% last year. Passenger vehicles saw EV penetration rise to 5.12%, more than double the 2.19% share in September 2024

Diesel remains dominant in commercial vehicles and tractors, while petrol/ethanol continues to lead in two-wheelers and passenger cars.