Passenger vehicle dispatches from companies to dealers rose 4 per cent year-on-year in September to 372,458 units, industry body SIAM said on Wednesday.
The overall passenger vehicle dispatches last month rose 4.4 per cent to 372,458 units, as against 356,752 units in September 2024.
Two-wheeler sales witnessed a 7 per cent on-year rise to 21,60,889 units last month, as compared to 20,25,993 units in the year-ago period, the Society of Indian Automobile Manufacturers (SIAM) said.
Total three-wheeler dispatches increased to 84,077 units last month, an increase of 5.5 per cent, as compared to 79,683 units in the same month the previous year.
"In spite of the new GST rates coming into effect from September 22, i.e. only for 9 days of the month, passenger vehicles, two-wheelers and three-wheelers have already posted their highest-ever sales of September," SIAM president Shailesh Chandra told reporters.
Looking ahead, the outlook for the sector remains encouraging due to key tailwinds, he added.
"The GST 2.0 reform is a landmark decision of the government, which, apart from catapulting the Indian auto industry to the next level, would bring in vibrancy in the entire economy, as this industry is closely intertwined with strong forward and backward linkages," Chandra stated.
In the July-September quarter, passenger vehicle sales stood at 10,39,200 units, a drop of 1.5 per cent, as compared to 10,55,137 units in the same quarter of last fiscal.
Two-wheeler sales witnessed a growth of 7 per cent year-on-year to 55,62,077 units, as compared to the July-September quarter of the previous fiscal year.
Three-wheeler dispatches to dealers saw a growth of 10 per cent year-on-year to 229,239 units in September, SIAM said.
"The Indian automobile industry enters the second half of 2025-2026 with renewed cheer, supported by strong festive season momentum, stable macroeconomic conditions, and GST 2.0 reforms that have improved overall affordability and consumer sentiment," the industry body said.
"While the industry remains watchful of geopolitical developments, the overall outlook for the rest of the current financial year remains encouraging, with the sector expected to close the fiscal year on a positive growth trajectory," it added.