India’s Light Vehicle (LV) wholesale figures for September increased by 15% month-on-month (MoM) to 437k units, with Passenger Vehicles (PVs) up by 16% to 373k units and Light Commercial Vehicles (LCVs) with a gross vehicle weight of up to 6T climbing by 10% to 64k units. On a year-on-year (YoY) basis, LV sales increased by 6%, supported by gains in both PVs and LCVs, which rose by 6% and 8%, respectively.

The MoM surge in PV wholesale volumes was driven by the early festive season (Navratri) and the implementation of new GST rates, which lowered car prices. Retail inflation eased to an eight-year low, contributing to positive consumer sentiment.

Similarly, retail sales of PVs and LCVs in September declined by 7% MoM to 343k units, compared to 369k units in August, according to data from the Federation of Automobile Dealers Associations (FADA). PV retail sales fell by 7% MoM, while LCV sales dropped by 4% MoM. FADA also noted that the decline in PV retail sales on a MoM basis was due to the anticipation of GST 2.0 reforms, where the first three weeks were largely muted. However, the dynamics changed dramatically in the final week as Navratri festivities coincided with the implementation of lower GST rates, reviving customer sentiment and accelerating deliveries for both PVs and LCVs. As a result, the month ended with an overall growth of 6% YoY for the LV market.

At the end of September, PV inventory levels in India increased to 60 days, up from 55 days in August, reflecting festive preparedness ahead of October’s peak season, according to data from FADA.

Through the first nine months of the year overall, LV sales remained flat at 3.7 million units, comprising 3.2 million PVs (+1% YoY) and 522k LCVs (+1% YoY).

Looking ahead, demand is expected to rise in October and subsequent months following the GST rate cut on automobiles and household items, which should lower costs and increase disposable income. The ongoing festival season, combined with price reductions from lower GST rates and aggressive marketing, is also likely to further stimulate demand.

We have refined our outlook for India’s LV market to reflect a stronger near-term trajectory. The market is expected to maintain a solid growth momentum through 2025 and 2026, supported by healthy domestic demand, improving supply stability, and new product launches. The long-term outlook through 2032 also remains robust, with LV sales reaching 6.8 million units.

This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.