Just three Indian states accounted for nearly 30% of all automobile sales between July and September 2025, even before GST 2.0 brought down prices across segments—from scooters to SUVs. The data highlights strong and consistent demand in key markets.
According to the Society of Indian Automobile Manufacturers (SIAM), India recorded sales of 10.39 lakh cars and 55.62 lakh two-wheelers in the second quarter of FY26.
Top-Selling States
Maharashtra led car demand with 1.32 lakh units, representing 12.7% of total car sales. Uttar Pradesh dominated two-wheeler demand, contributing 6.93 lakh units, or 12.5% of all scooters and motorcycles sold.
Gujarat stood out as a consistent top-three market across every vehicle category. The state contributed:
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8.5% of all cars
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8.0% of all two-wheelers
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9.8% of all three-wheelers
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9.4% of all commercial vehicles
This broad-based performance shows Gujarat’s strong and balanced automobile demand.
Overall Auto Sales Trends in Q2 FY26
Car sales dipped slightly in Q2 FY26, as many buyers postponed purchases until GST 2.0 rate cuts came into effect on September 22. The government rationalised GST into two slabs:
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18% for small cars
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40% for SUVs
Factory dispatches declined 1.5% year-on-year to 10.40 lakh units, while two-wheeler sales grew 7.4% to 55.6 lakh units.
SIAM President Shailesh Chandra noted on October 15 that despite only nine post-GST days in September, cars, two-wheelers, and three-wheelers still posted their highest September sales ever.
October 2025: A Record-Breaking Month
The GST impact became clear in October 2025.
Factory dispatches rose 17.2% year-on-year to 4,60,739 units as automakers prepared for strong market demand. Two-wheeler dispatches increased 2.1% to 21,64,276 units.
Retail sales—measured by vehicle registrations on the VAHAN portal—hit an all-time high. Total retail sales surged 40.5% year-on-year to 40,23,923 units, driven by festive demand, rural recovery, and GST-related price cuts.
Retail Performance in October 2025
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Two-wheelers: Up 51.76% YoY / 144.60% MoM to 31,49,846 units
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Three-wheelers: Up 5.43% YoY / 31% MoM to 1,29,517 units
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Cars: Up 11.35% YoY / 86.18% MoM to 5,57,373 units
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Commercial vehicles: Up 17.69% YoY / 49.52% MoM to 1,07,841 units
FADA President C.S. Vigneshwar said October 2025 will be remembered as a “landmark month” where reforms, festive energy, and rural momentum combined to produce record-setting results.


























