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October 2025 passenger vehicle sales buoyed by festive fervour and GST rate cuts: SIAM
The Indian passenger vehicle market hit a record 4.61 lakh units in October 2025 sales, showing steady growth backed by festive demand and lower GST rates.
The Indian passenger vehicles segment recorded its highest-ever dispatches in October 2025, according to the latest data gathered by the Society of Indian Automobile Manufacturers (SIAM). OEMs sold a total of 4.61 lakh units in the domestic market, marking a 17.2 per cent increase over the 3.93 lakh units sold in the same month a year ago. Reflected across passenger cars and utility vehicles (SUVs) segments, the growth was attributed to strong festive season demand and lower upfront costs backed by the recent GST rate rationalisation.
Director General of SIAM, Rajesh Menon, said, “With the reduced GST rates becoming effective from 22nd September 2025, October witnessed a strong uptick in Vehicle Registrations, resulting in a notable rise compared to Wholesales.”
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The new tax structure is a 2-slab system of 5 per cent and 18 per cent, with a special 40 per cent slab reserved for luxury goods. Earlier, all cars were taxed at 28 per cent, with an added cess ranging from 1-22 per cent, depending on the body style and engine size. Under the new regime, most mass-market vehicles (petrol <1,200 cc; diesel <1,500 cc) now fall into the 18 per cent slab, while large SUVs or luxury cars with bigger engines fall into the 40 per cent category, down from an effective 45 per cent. With cess scrapped, the total tax incidence has been considerably reduced, resulting in lower prices across the board.
| Segment | Domestic | Exports | ||
|---|---|---|---|---|
| 2024 | 2025 | 2024 | 2025 | |
| Passenger cars | 1,07,520 | 1,16,601 | 31,534 | 34,295 |
| Utility vehicles | 2,25,934 | 2,69,467 | 28,880 | 33,876 |
SUVs dominate domestic sales
The GST effect was most visible in the SUV segment, which dominated October 2025 sales with 2.69 lakh total units sold. This marks a robust 19.3 per cent year-on-year increase over the 2.26 lakh units sold in the same month last year. Passenger car sales grew by 8.4 per cent YoY with 1.17 lakh units, which is a notable improvement over October 2024, when the segment observed a 17.3 per cent decline. SUVs have captured 58.47 per cent of total PV sales in October 2025, accounting for more than half of total domestic volumes.
(Also read: Why R C Bhargava thinks India’s CAFE norms need a rethink)
Positive export demand
Exports observed favourable growth with 68,738 total units sold overseas, marking an 11.7 per cent YoY increase. While passenger cars currently hold the edge in market share with 34,295 units sold, overseas demand for Indian-made SUVs reflects positive trends with a notable 17.3 per cent YoY growth.
H1 2025 numbers rose by 17.4 per cent to 5.15 lakh units, reflecting the growth in overseas demand through the fiscal year. SUV exports reached 2.45 lakh units, marking a 24.7 per cent increase over the same period last year, while the compact car segment held steady with 2.64 lakh units sold, up by 11.4 per cent.
