Festive season lifts auto sales in September; October outlook stronger: Citi Research

Hyundai saw a one per cent rise in domestic volumes and a 44 per cent surge in exports.

“>

Passenger vehicle and two-wheeler sales showed signs of revival in September 2025, driven by festive demand and recent GST rate cuts, according to a report by Citi Research.

The festive season began on September 22, prompting a surge in retail activity following subdued sales in August.

“Wholesale dispatches have been relatively modest for a few OEMs due to late dealer offtake and logistics constraints. Tractor volumes were particularly robust. We expect a very strong October print, given sentiment trends and the full month’s impact of GST cuts,” Citi Research said in its report.A strong boom reported by OEMs

Among key players, Bajaj Auto recorded a five per cent year-on-year (YoY) rise in domestic two-wheeler sales, with a 48 per cent month-on-month jump. Exports grew 12 per cent YoY, while domestic commercial vehicle sales fell one per cent YoY, offset by a 67 per cent surge in exports.TVS Motor posted an 11 per cent increase in overall two-wheeler sales, with domestic volumes up 12 per cent YoY and EV sales higher by eight per cent. Hero MotoCorp reported a five per cent rise in domestic two-wheeler sales and eight per cent growth in total volumes, while exports nearly doubled, up 95 per cent YoY.Maruti Suzuki witnessed strong retail traction with around 200,000 deliveries and 250,000 pending bookings, though wholesale volumes declined eight per cent YoY (excluding Toyota sales) due to logistical bottlenecks. Including Toyota dispatches, domestic volumes were down six per cent, while exports jumped 52 per cent, lifting overall sales by three per cent.Hyundai saw a one per cent rise in domestic volumes and a 44 per cent surge in exports. Mahindra & Mahindra recorded 10 per cent growth in utility vehicles and a robust 50 per cent jump in tractor sales, supported by festive demand.

Tata Motors delivered a strong 45 per cent increase in domestic passenger vehicle sales. Commercial vehicle volumes were stable, with small commercial vehicles and pick-ups rising 30 per cent YoY. Ashok Leyland reported a five per cent increase in medium and heavy truck sales, though bus volumes fell nine per cent.

Eicher Motors achieved record monthly sales for Royal Enfield, delivering 124,328 units, a 43 per cent YoY rise. Larger motorcycles above 350cc also performed strongly, despite higher GST rates.