India’s automobile retail sector witnessed steady growth in September 2025, with overall vehicle registrations increasing by 5.22% year-on-year. According to the Federation of Automobile Dealers Associations (FADA), the total number of vehicles registered in September reached 18,27,337 units compared to 17,36,760 units in the same month last year.
Passenger Vehicles and Two-Wheelers See Strong Growth
Passenger vehicles saw a growth of 5.80%, with 2,99,369 units registered in September 2025. Two-wheelers also performed well, rising 6.51% to 12,87,735 units. FADA attributed the growth to factors like above-normal monsoon rains, strong kharif harvest, and stable policy rates that enhanced consumer purchasing power.
Navratri Festival Boosts Vehicle Sales
The Navratri festival period recorded an exceptional 34.01% surge in vehicle registrations. Passenger vehicles jumped 34.87%, while two-wheelers increased 35.95%. During Navratri alone, total registrations reached 11,56,935 units. Dealerships also reported a sharp rise in enquiries and bookings ahead of Dhanteras and Deepawali.
Six-Month Sales Performance (April–September 2025)
For the period of April to September 2025, total retail sales reached 1,23,48,306 units, marking a 3.42% increase compared to the same period last year.
Electric Vehicle Segment Sees Rising Penetration
Electric vehicles (EVs) continue to gain traction across India. In September 2025, EV penetration reached:
- Three-wheelers: 61.74%
- Two-wheelers: 8.09%
- Passenger vehicles: 5.12%
This growth highlights the increasing adoption of clean energy vehicles in the country.
Conclusion
India’s automobile sector is showing positive momentum in 2025, driven by festivals, strong consumer demand, and government support for electric mobility. With Navratri and the festive season boosting sales, the market outlook for the remaining year looks promising.
