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India’s automobile sector has been flourishing in recent times. In October 2025, the automotive industry recorded its highest-ever monthly sales of over 4.7 lakh units, marking a strong 17% year-over-year increase.
This growth isn't a random occurrence. Several factors have contributed to the uptrend, including unique festive season demand, the implementation of the GST 2.0 tax regime, and a gradually improving consumer sentiment in urban and semi-urban markets.
The timing of Diwali-Dussehra sales, offering attractive discounts and promotions, has also contributed to growth and sales momentum.
Almost all the major automotive players in India have seen this growth. Maruti Suzuki, the country’s largest automobile maker, has reportedly sold 1,76,318 units, marking a 10.4% increase. Maruti’s highest-selling models include SUVs such as the Brezza and Fronx.
Tata Motors is next in line with its best monthly sales ever. In October, the company delivered 61,134 units, representing a 27% increase from 48,131 units in October 2024.
Mahindra & Mahindra followed them closely with 1,20,142 units sold in October. It shows a 26% growth within a year, primarily driven by SUV sales of 71,624 units.
Amid this growing chart, Hyundai Motor India sold 53,792 units, which shows a modest 3.2% decline. The reason can be anything, but experts assume pressure from domestic rivals and supply constraints to be the major reasons behind this downfall.
Experts agree that the festive quarter has boosted the market; however, sustainability remains the primary concern. Analysts have pointed out that GST 2.0 has reduced taxes on both small and large vehicles. Through this new regulation, the affordability has increased. However, the real test is still to come, and once the festive season is over, it will arrive.
Some industry experts have even warned that elevated dealer inventory and delayed price revisions may hinder growth in the coming months. Still, hope is there because rural demand has improved, and the industry expects 6% growth in the second half of FY26.
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The sales hike in October represents a sign of strength for India's automotive ecosystem. The convergence of tax rationalization, festive fiscal outlay, and a resurgence of consumer confidence has propelled the industry on a path of growth.
However, as the market gradually shifts toward the new year, automakers should take care to balance supply with realistic expectations. If the momentum continues, the festive surge will become a sustainable growth engine. If the figures fall flat, it would be a momentary setback on India's long road to recovery.
