India’s passenger vehicle (PV) industry is estimated to have recorded its highest-ever monthly dispatches and retail sales in October 2025 as a reduction in Goods and Services Tax (GST) rates during the peak festive season spurred an unprecedented surge in demand.
Most original equipment manufacturers (OEMs) on Saturday reported record monthly dispatches to dealer showrooms while indicating that retail sales far exceeded wholesale sales.
Domestic dispatches for the country’s largest carmaker -- Maruti Suzuki (MSIL) -- grew by 10.5% year-on-year to 176,318 units in October 2025.
According to MSIL’s Senior Executive Officer for Marketing and Sales Partho Banerjee, dispatches of 180,795 units (including LCV) are an all-time high figure for the company, beating the previous best of January 2025 when MSIL dispatched 177,688 units.
“In October, we did a retail of 242,096 units which is a growth of 20% y-o-y. Our market share grew to 43.5% last month (as per Vahan data). The network stock has come down to 1.04 lakh vehicles, which is like 19 days of inventory. Our endeavour is now to supply more vehicles. For the 40-day festival period, we had 5 lakh bookings, the retail was 4.1 lakhs which is double than last year's number,” said Banerjee who expects demand momentum to continue, especially in the sub-4 metre segment where the GST rate is slashed from 28% to 18%.
SUV major Mahindra & Mahindra sold 71,624 PVs in the domestic market last month, a growth of 31% y-o-y. According to Nalinikanth Gollagunta, CEO, Automotive Division at M&M Ltd, “In October, we achieved SUV sales of 71,624 units, a growth of 31%, which is the highest SUV sales we have clocked ever in a month.”
Tata Motors also reported record-breaking monthly wholesales and registrations last month. Its domestic dispatches stood at 61,134 units, up 27% y-o-y. As per Vahan data, Tata Motors secured the second spot in October 2025 with 74,705 units, retailing 7,905 units more than Mahindra and 9,660 units more than Hyundai.
Hyundai Motor India Limited (HMIL) achieved total monthly sales of 69,894 units in October 2025. This includes monthly domestic sales of 53,792 units and exports of 16,102 units.
Tarun Garg, Whole-time Director & Chief Operating Officer, HMIL said, “October 2025 was a month driven by the festivals of Dussehra, Dhanteras and Diwali, further complimented by the positive impact of GST 2.0 reforms. This provided a significant boost to the Indian automotive industry.”
Toyota Kirloskar Motor (TKM) and Kia India also registered a sharp surge in October 2025 sales. TKM domestic dispatches grew by 43% to 40,257 units while Kia India achieved its best-ever monthly sales performance in October 2025 with 29,556 (up 30%) units.
“Moreover, the favourable economic environment during the festive season, reinforced by the government’s forward-looking GST reforms, has also boosted market confidence. At TKM, this has resulted in a significant rise in customer enquiries and order intakes, collectively driving our overall performance,” said Varinder Wadhwa, Vice President, Sales-Service-Used Car Business.
