Passenger vehicles, 2-wheelers to record strong sales momentum in October
Normura reported that the passenger vehicle demand growth is expected to be in teens, while the two-wheeler growth is expected to be in mid-high single-digits
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With the implementation of GST reforms, passenger vehicles and the two-wheeler segment are expected to witness strong growth in sales in October and the festival season. According to automobile experts, an uptick in sales was witnessed across vehicle categories, including entry-level passenger cars and two-wheelers.
Normura reported that the passenger vehicle demand growth is expected to be in teens, while the two-wheeler growth is expected to be in mid-high single-digits. “We estimate wholesales for the PV industry at 3 per cent year-on-year, while PV retail volumes so far are strong at 14 per cent year-on-year in Oct. PV demand has shown a visible pickup so far, in the backdrop of festival demand and GST cuts. OEMs with higher dealer inventory might benefit in terms of retail market share,” said a report from Nomura.
strong recovery
The Indian automobile sector exhibited strong recovery, propelled by a significant reduction in the Goods and Services Tax (GST) and the onset of the festival season. The overall market sentiment improved across vehicle segments, signalling a positive turn for the industry in the fiscal year FY26, according to ICRA.
“In the two-wheeler segment, retail sales grew 6.5 per cent year-on-year. After muted sales in the first few weeks due to purchase deferrals, demand surged materially following the GST implementation, supported by festival tailwinds and pent-up demand. Wholesale volumes also grew 6.0 per cent as manufacturers increased dispatches. With healthy exports and steady electric two-wheeler penetration, ICRA projects a 6-9 per cent wholesale volume growth for FY26, bolstered by improved affordability and expected rural demand,” said a note from ICRA.
ICRA stated that GST reductions, sustained festival demand, and steady rural incomes are acting as the primary growth drivers for a positive outlook for the Indian automobile sector in FY26.
businessline had earlier reported that as down payments and EMIs on vehicles reduced, consumers have increased vehicle purchases in the festival season. The Federation of Automobile Dealers Association (FADA) believes festival sales in 2025 will possibly be the highest recorded.
Published on October 30, 2025
