GST 2.0 Impact: India’s Passenger Vehicle Retail Sales Jump 22%, Says Report - Times Now

• Passenger vehicle retail sales grew 22% YoY in November 2025: ICRA.
• Wholesale volumes rose 19% to 4.1 lakh units as demand stayed steady.
• Utility vehicles (UV) led volumes, while small car segments revived post GST cuts.

India’s passenger vehicle (PV) retail sales recorded a 22% year-on-year (YoY) growth in November 2025, driven by GST rate cuts, steady post-festive demand, and higher buying during the winter wedding season, according to a report by ICRA Analytics. While retail momentum remained strong, sales moderated compared to October’s festive peak. Wholesale volumes also saw a notable rise, indicating sustained demand across segments. The report highlights improving inventory levels, a strong contribution from utility vehicles, and a revival in smaller car segments following GST reforms. Overall, the data points to a stable demand environment as the industry heads into 2026.

As per the ICRA Analytics report, cited by IANS, passenger vehicle retail sales rose 22% year-on-year in November 2025, although they declined 29% month-on-month (MoM) from October due to the end of the festive period. On the wholesale side, volumes increased 19% YoY to 4.1 lakh units, as OEMs continued production to match market demand. For the first eight months of FY2026, wholesale volumes grew 3.6% YoY, while retail sales expanded at a faster 6.1%, which reflects healthier dealer-level offtake.

Inventory Levels Show Improvement

Dealer inventory levels improved significantly during the period. Data from the Federation of Automobile Dealers Associations (FADA) shows inventory levels reduced to 44–46 days by November 2025, compared to around 60 days at the end of September. This improvement was largely supported by stronger retail sales following GST reductions and better demand visibility for dealers, easing pressure across the supply chain.

Segment-Wise Trends In Passenger Vehicles

Utility vehicles continued to dominate the market, accounting for 67% of passenger vehicle volumes in November, though this was slightly lower than 69% in October. At the same time, mini, compact, and super-compact car segments showed signs of revival after GST cuts, indicating renewed interest from price-sensitive buyers. This shift suggests a broader-based recovery rather than growth concentrated only in SUVs.

ICRA Analytics has forecast FY2026 wholesale volume growth of 1–4%, supported by stable demand, GST reforms, new model launches, as well as improving consumer sentiment. The report noted that continued policy support and market confidence are expected to sustain momentum into the next financial year, even as growth normalises from recent highs.

Beyond passenger vehicles, the broader automotive market also posted strong gains in November. Two-wheeler sales rose 21.2% to 19.44 lakh units, while three-wheeler sales grew 21.3% to 71,999 units. Scooter sales surged 29.4%, reflecting strong urban demand, while motorcycle sales increased 17.5%, supported by rural and semi-urban markets. Passenger vehicle exports also remained strong, driven by demand from the Middle East and Latin America.

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