Record car sales in October thanks to reduced GST rates
India just had its biggest-ever month for car sales, all thanks to a major GST rate cut that kicked in on September 22, 2025.
Taxes on small cars dropped from 28% to 18%, and bigger vehicles saw rates fall to 40%.
Car companies quickly passed these savings on, making new rides way more affordable this festive season.
Price cuts drove historic numbers
Lower prices and pent-up demand pushed wholesale passenger vehicle shipments to an all-time high of 460,739 units in October—a jump of 17% from last year.
Big names like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra all reported their best-ever monthly sales in October.
Retail sales smashed records too
With cars suddenly cheaper, retail sales actually outpaced wholesales—557,373 vehicles found new owners in October alone.
Two-wheelers also hit record highs at over three million sold, though motorcycle sales slipped by 4%.