Auto majors Maruti Suzuki, Tata Motors and Mahindra & Mahindra reported robust sales in September as reduced price tags owing to GST rationalisation led to record demand in the Navaratri period.

The month also saw Tata Motors and Mahindra & Mahindra settling at number two and three positions, respectively in vehicle wholesales ahead of Hyundai Motor India.

Maruti Suzuki India said its total domestic passenger vehicle dispatches to dealers stood at 1,32,820 units last month compared with 1,44,962 units in the year-ago period, a dip of 8 per cent.

The domestic wholesale figure for the month should be seen in the context of logistical constraints towards the last part of the month, the auto major stated.

In a virtual press conference, Maruti Suzuki India Senior Executive Officer for Marketing and Sales Partho Banerjee said the company's retail sales were 1.73 lakh units last month, an increase of 27.5 per cent as compared with September 2024.

He noted that the company has 2.5 lakh pending bookings and has already retailed 1.65 lakh units in the first 8 days of Navaratri. "It is an all-time high in the last 10 years. With two days left, we are expecting to cross the 2 lakh sales mark," Banerjee noted.

He stated that the GST reforms and subsequent reduction in vehicle prices especially the small cars has led to the robust sales growth. Banerjee noted that the company has outpaced various global automakers to become the 8th most valuable firm in the segment with a valuation of USD 57.6 billion.

"This is just not a financial number but a global vote of confidence and it reflects the resilience of the Indian economy," he stated. Banerjee noted that in order to cater to the large number of bookings, the company is looking to enhance the production capacity. Sales of the company's mini segment cars, comprising Alto and S-Presso, declined 30 per cent to 7,208 units against 10,363 units in September 2024.

Sales of compact cars, including Baleno, Dzire, Ignis, and Swift, also rose to 66,882 units from 60,480 units in the year-ago month.

Utility vehicles, consisting of Grand Vitara, Brezza, Ertiga and XL6, clocked sales of 48,695 units last month over 61,549 units earlier, a decline of 21 per cent.

Tata Motors said its passenger vehicle dispatches to dealers rose 45 per cent to 59,667 units against 41,063 units in the year-ago period. "The passenger vehicles industry marked a sharp upswing in demand during September 2025, following the rollout of GST 2.0, further buoyed by festive tailwinds. This surge in demand sets a promising tone for sustained growth in the months ahead," Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said.

For the company, September 2025 emerged as a watershed month with sales of 60,907 units, the automaker's highest ever, marking a substantial 47 per cent year-on-year growth, he added.

Mahindra & Mahindra said its utility vehicles dispatches to dealers surged 10 per cent year-on-year to 56,233 units in the domestic market last month, as against 51,062 units in the year-ago period.

"Thanks to the impetus from GST 2.0 and the preceding weeks' pent-up demand, we have seen robust growth in dealer reported customer retails during the first nine days of Navratri, with over 60 per cent growth in the SUV segment and over 70 per cent growth in the CV segment compared to the first nine days of Navaratri last year," Nalinikanth Gollagunta, CEO, Automotive Division, M&M, said.

The surge in festive demand has placed significant constraints on the availability of trailers, he added. Hyundai Motor India said its domestic wholesales saw a marginal increase to 51,547 units last month from 51,101 units in the year-ago period.

"Post announcement of GST 2.0 reforms, HMIL is witnessing a synergetic alignment of both domestic and export markets now growing in tandem - a true double-engine growth," Hyundai Motor India Ltd (HMIL) COO Tarun Garg said.

The company's domestic sales in September stood at 51,547 units, driven by vibrant festive demand and strong customer interest across all segments, he added.

Toyota Kirloskar Motor said its wholesale to dealers in the domestic market stood at 27,089 units last month. "Thanks to the landmark GST reforms by the Government of India and the onset of the festive season, market sentiments have been upbeat," Varinder Wadhwa, Vice President, Sales-Service-Used Car Business, said.

In the two-wheeler segment, Bajaj Auto reported a growth of 4 per cent year-on-year in total domestic sales at 3,25,252 units last month. Royal Enfield said its domestic sales were at 1,13,573 units last month as against 79,325 units in the year-ago period, up 43 per cent.

In a landmark tax reform, the government has moved to two-tier slabs of 5 per cent and 18 per cent effective from September 22, the first day of Navaratri. This has led to the petrol, LPG and CNG vehicles of less than 1,200 cc and not more than 4,000 mm length and diesel vehicles of up to 1,500 cc and 4,000 mm length moving to the 18 per cent rate from the current 28 per cent.

Motorcycles up to 350 cc are now taxed at a lower GST of 18 per cent against 28 per cent earlier.

All automobiles above 1,200 cc and longer than 4,000 mm as well as motorcycles above 350 cc and racing cars are being charged with a 40 per cent levy. Small hybrid cars will also benefit, while EVs will be continued to be charged at 5 per cent.

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