PVs, two- and three-wheelers post their highest dispatches in October, buoyed by GST reforms and festive cheer: SIAM

Passenger vehicles and the two- and three-wheeler segments posted their highest dispatches in October, as demand skyrocketed following the reduction in GST rates, which were lowered right at the cusp of the festive season, despite the logistical constraints OEMs faced, the Society of Indian Automobile Manufacturers (SIAM) said on Friday.

“With the reduced GST rates becoming effective from 22nd September, October witnessed a strong uptick in vehicle registrations, resulting in a notable rise compared to wholesales,” said Rajesh Menon, director general, SIAM, in a statement.

Passenger vehicles recorded sales of 4.61 lakh units, posting a growth of 17.2% while 22.11 lakh units of two-wheelers were sold, with a growth of 2.1% as compared to October of the previous year. In the three-wheeler segment, 81.29 thousand units were sold, up 5.9% from October 2024.

In October, the production of passenger cars—including hatchbacks, a segment that has been under pressure because it became out of reach for its traditional buyers, first-time car buyers—rose 8.7% to 1,39,273 units. The production of utility vehicles, on the other hand, rose 10.7% to 2,51,144 units. It should be noted that utility vehicles have been a resilient segment despite the downturn in overall passenger vehicle sentiment.

Earlier, the Federation of Automobile Dealers Association (FADA) said that the overall retail auto sales in October and the 42-day festive period have hit an all-time high growth of 40.5% year-on-year, buoyed by the GST reforms and a resurgence in the rural markets—with both passenger vehicles and two-wheelers achieving lifetime highs—in a hurdle-race-style rebound in demand.

“After an almost quiet September for the first 21 days due to the GST 2.0 transition, October witnessed a swift rebound—almost like a hurdle race where pent-up demand passed the baton to festive sentiment and tax-cut excitement, propelling sales to historic levels,” said CS Vigneshwar, president, FADA, in a statement.

Segment-wise, two-wheelers have surged 52% year-on-year in October, supported by the trifecta of the aforementioned factors—revival of demand in rural India, GST reductions, and the festive season rush. Passenger vehicles grew 11% year-on-year in October, breaching the five-lakh mark to close at 5.57 lakh units, the highest ever in India’s retail history. “Importantly, inventory levels eased by 5–7 days to 53–55 days, reflecting healthier supply alignment,” Vigneshwar added.