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2h ago

GST 2.0, Navratri Lift India Auto Retail 34% During Festival Window

Lower GST rates that took effect with Navratri spurred deferred purchases into a late‑September burst of showroom deliveries.

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Overview

  • FADA reported vehicle registrations of about 11.57 lakh during Sept 22–Oct 2, up roughly 34% year on year, with passenger vehicles at 2,17,744 and two-wheelers at 8,35,364.
  • For the full month, September retail rose 5.22% year on year to 18,27,337 units, including passenger vehicles up 5.8% to 2,99,369 and two-wheelers up 6.5% to 12,87,735, while three-wheelers fell 7.2% and construction equipment declined 19%.
  • Dealers said they used the surge to rebuild stock and now hold roughly 60 days of inventory to serve expected Dhanteras and Diwali demand.
  • EV penetration increased in September, with electric three-wheelers at about 61.7% of the segment, two-wheelers at 8.1%, and passenger vehicles at 5.1%, according to FADA.
  • Analysts cautioned that part of the Navratri jump reflects purchases delayed ahead of the GST change, suggesting momentum beyond the festive window will hinge on sustained demand and smooth supply chains.