Indian Car Sales Hit Record High in October 2025 on Festive Cheer & GST 2.0 Boost

October 2025 has emerged as one of the most remarkable months in the history of the Indian automobile industry. A rare convergence of festive excitement, tax relief under the newly implemented GST 2.0, and a slate of new model launches created a "perfect storm" for record-breaking car sales. Major automakers - led by Maruti Suzuki, Mahindra & Mahindra, and Tata Motors - reported their highest-ever monthly dispatches as consumers flocked to showrooms.​

This analysis explores how the Indian passenger vehicle (PV) market achieved this milestone, presenting a detailed company-wise performance breakdown, key sales figures, and the major trends shaping the future of the auto industry.

Table of Contents

1. How a "Perfect Storm" Fueled Record Demand
2. Company-wise Sales Performance: Who Sold the Most?
3. The Unstoppable Rise of SUVs and EVs
4. Industry Outlook: What Do October's Record Sales Mean for 2026?
5. Frequently Asked Questions (FAQs)

How a "Perfect Storm" Fueled Record Demand

October 2025 was a landmark month for India’s auto industry, with total passenger vehicle wholesales reaching a record high of over 4,70,000 units, a robust 17-19% year-on-year (YoY) growth. This unprecedented surge was driven by three key factors:​

1. The Festive Overlap: The month saw the confluence of major festivals like Dussehra, Dhanteras, and Diwali, which traditionally spur high consumer spending.​

2. GST 2.0 Impact: The rollout of the GST 2.0 framework, which effectively reduced car prices across most segments, provided a significant boost to buyer sentiment.​

3. Strong Consumer Confidence: The festive cheer was further supported by easier financing options, a flurry of new model launches, and overall economic optimism, leading to record footfalls at dealerships.​

Company-wise Sales Performance: Who Sold the Most?

The sales boom was broad-based, with most major automakers reporting strong growth. However, the industry leaders cemented their dominance with record-breaking figures.​

Passenger Vehicle Sales Snapshot (October 2025)

• Maruti Suzuki: Continued its reign as the industry leader, posting its highest-ever monthly domestic sales. The growth was driven by robust demand for its compact cars and expanding SUV portfolio.​

• Mahindra & Mahindra: Delivered its best-ever monthly performance, with SUV sales surging 31% to 71,624 units. The growth was led by the immense popularity of its flagship models like the Scorpio-N, XUV700, and Thar.​

• Tata Motors: Also achieved its best-ever monthly wholesales for the second consecutive month. The performance was dominated by its SUV lineup, which accounted for over 77% of its sales, and a record month for its EV division.​
  

• Hyundai Motor India: Saw a minor dip in domestic sales but maintained strong momentum with its popular SUVs, Creta and Venue, which recorded combined sales of over 30,000 units.​

• Toyota and Kia: Both companies posted strong double-digit growth, with Toyota hitting its highest-ever monthly sales and Kia also recording its best-ever month in India, driven by their popular SUV models.​

• Skoda Auto India: Emerged as the fastest-growing brand with a remarkable 102% YoY increase, thanks to strong demand for its new Kylaq SUV and an expanding dealer network.​

There’s an insightful video by BIZ Tak that breaks down October’s record car sales, highlighting how Tata Motors surged ahead while Mahindra and Hyundai lagged — worth watching for a data-backed view of market leadership.

The Unstoppable Rise of SUVs and EVs

Two clear trends dominated the market in October:

1. The SUV Craze: The Indian car market is now firmly an SUV-driven landscape. Compact and sub-compact SUVs accounted for the majority of sales volumes, reflecting a strong consumer preference for vehicles that offer a blend of style, space, and practicality.​

2. The EV Push: The electric vehicle segment hit new highs, led by Tata Motors, which sold a record 9,286 EVs in October, a 73% YoY increase. The success of affordable models like the Tiago EV and Punch EV shows that Indian consumers are increasingly embracing cleaner mobility, especially after the GST rate cuts made them more accessible.​

Want to understand how sector-wide performance trends are being captured in indices? Track movements in Nifty Auto to compare company-specific sales with market sentiment.

Industry Outlook: What Do October's Record Sales Mean for 2026?

October 2025 has set a historic milestone for India’s passenger vehicle industry. While the record-breaking numbers were heavily influenced by the rare combination of festive demand and policy support, they also underscore the market's underlying resilience and growth potential.

While growth may moderate in the post-festive season, the medium-term outlook remains positive. The benefits of GST 2.0 are expected to continue supporting demand, and the structural shift towards SUVs and EVs is a long-term trend that will shape the industry for years to come.

Want to understand how GST 2.0 reshaped investor sentiment? Read the detailed breakdown on Auto Stocks Rally to see how the recent tax cuts triggered record gains in auto counters across Mahindra, Maruti, and Tata Motors.

Frequently Asked Questions (FAQs)

1. Why were car sales so high in October 2025?
Car sales surged due to the combined effect of the festive season (Dussehra and Diwali), price reductions from the rollout of GST 2.0, new model launches, and attractive financing options.​

2. Which company sold the most cars in October 2025?
Maruti Suzuki remained the market leader, selling 1,76,318 passenger vehicles and maintaining its dominance in the industry.​

3. Which automaker recorded the fastest growth?
Skoda Auto India saw the fastest YoY growth at 102%, driven by strong demand for its Kylaq SUV and an expanding dealer network.​

4. How did electric vehicle (EV) sales perform?
EV sales grew sharply, led by Tata Motors, which sold a record 9,286 EVs, a 73% YoY increase reflecting the rising popularity of its affordable EV models.​

5. What is the outlook for the Indian auto industry after this record month?
While growth may stabilise after the festive season, the medium-term outlook remains positive. The market is expected to be driven by the continued dominance of SUVs, accelerating EV adoption, and the sustained benefits of lower taxes under GST 2.0.