October 2025 saw the full impact of the recent GST rate cut combined with the festive season, driving a broad recovery across the automobile industry. The month reflected solid wholesale numbers for automakers, led by a strong performance in the commercial vehicle segment and steady demand in passenger vehicles and two-wheelers.
Commercial vehicles outperformed other categories during the month. Tata Motors reported a 10% year-on-year rise in CV sales, while Ashok Leyland posted a 16% increase against an estimated 11%. The company’s bus business, which had been underperforming earlier, showed a turnaround with sales up 34%, supported by improved fleet demand and infrastructure spending.
Passenger vehicle sales were largely in line with expectations. Growth continued to be led by SUVs, while the entry-level segment remained weak despite the GST benefit. Maruti Suzuki’s total sales rose 7%, with compact cars growing 16% and SUVs up 10%.
Mahindra & Mahindra recorded a 31% year-on-year rise in SUV sales, its highest monthly growth so far, supported by new product launches. Tata Motors reported a 27% increase in its passenger vehicle segment, driven by strong SUV demand.
In the two-wheeler segment, wholesales remained steady after a subdued first half of FY26. Eicher Motors and TVS Motor outperformed with growth higher than the industry average, while Bajaj Auto’s sales were broadly in line but growth remained muted.
At the retail level, Vahan registration data pointed to continued festive momentum. Registrations since Navratri rose 23% for passenger vehicles and 22% for two-wheelers.
Compared to the period since Ganesh Chaturthi, growth stood at 11% and 12%, respectively. The full effect of Diwali sales is expected to appear in Vahan data around November 8. If current trends persist, the industry is likely to meet its FY26 volume estimates.
In the electric two-wheeler space, performance remained mixed. Ola Electric underperformed, slipping to fourth position by market share. Its registrations were down 62% year-on-year but up 20% month-on-month, with average monthly registrations in 2025 at 18,000 units compared to 34,000 in 2024.
Ather Energy, which holds the third position by market share, recorded strong growth with registrations up 73% year-on-year and 54% month-on-month. Its average monthly registrations rose to 16,000 units this year from 10,000 in 2024.
