This could be the best festival season sales ever: FADA

With the GST rationalisation, demand for entry-level vehicles, which had dipped significantly after the coronavirus pandemic, has now returned to the levels of 2019

With the implementation of GST 2.0, entry-level passenger vehicles and two-wheelers have seen a significant rise in sales this festival season, “the best ever”, according to the automobile dealers association.

As down payments and EMIs on vehicles reduced, consumers have increased vehicle purchases during this festival season. The Federation of Automobile Dealers Association (FADA) said that festival sales in 2025 will possibly be the highest festival sales recorded.

“This year could be the best festival season ever. We still have three-four days of sales left, but the demand has been robust. The GST 2.0 implementation has also helped boost sales of entry-level vehicles. Consumers did not hold back their purchases this festival season, and we are witnessing an uptick across the country,” CS Vigneshwar, President, FADA, told businessline. 

Pre-Covid levels

With the GST rationalisation, demand for entry-level vehicles, which had dipped significantly after the coronavirus pandemic, has now returned to the levels of 2019, according to experts. 

The automotive dealers’ body is expected to release the data on festival sales in early November. The uptick in sales comes after the GST Council had slashed GST rates on cars up to four metres in length and up to 1,200 cc engines to 18 per cent from 28 per cent and also removed the cess, making vehicles cheaper. The revised rates came into effect from September 22. 

During Navratri, FADA had stated that dealerships across the nation witnessed record-breaking footfalls and deliveries, with overall retail sales surging 34 per cent year on year. 

“The reduction in GST rates, coupled with festival demand, led to renewed enquiries and bookings,” mentioned a statement from FADA 

Financing scheme  

Along with the GST reduction, attractive financing schemes aided in consumer purchases across vehicle categories. Motorcycles below 350 cc witnessed heightened demand from consumers.

Automobile dealers are anticipating the sales momentum to continue till the end of the year. 

“Lenders also ensured lucrative finance options were available to consumers this festival season. A consumer who would earlier have purchased a second-hand vehicle is now willing to purchase new entry-level vehicles with attractive finance schemes, including reduced EMIs and down payment,” said Sachin Vasantrao Mahajan, Chairperson, FADA Maharashtra.

Published on October 28, 2025