A year after GST rates were rationalised, retail growth in automobiles has sustained beyond the initial festival surge, led by two-wheelers and passenger vehicles (PVs), with the Fada data showing rural markets emerging as a key driver of the post-GST demand recovery.
"When Royal Enfield turned 100, we were struggling for survival"
Bajaj Auto plans to increase its annual production capacity by nearly 25 per cent, from around 7 million to over 9 million vehicles, in the coming quarters. This expansion is driven by strong export demand and rapid growth in electric vehicles, which have stretched current capacity across key product segments.
The stock of automative major Eicher Motors hit its all-time high on Wednesday, capping the year with gains of about 52.7 per cent. It has comfortably outperformed its sector index, the Nifty Auto, which jumped 22.7 per cent, as well as the benchmark Nifty, which rose 10 per cent during this period.
Renault India on Saturday said it will reduce prices of its vehicles by up to Rs 96,395 to pass on full benefit of the recent GST rate cut to buyers. The GST Council, earlier this week, approved limiting slabs to 5 per cent and 18 per cent, effective from September 22.
Retail sales of vehicles across categories in India in 2025 grew by 7.71 per cent at 2,81,61,228 units as compared to 2,61,45,445 in 2024, with GST 2.0 helping overcome a subdued start to the year, Federation of Automobile Dealers Associations said on Tuesday.
At present, e-mobike penetration in India is close to negligible, unlike the scooter segment, where electric scooters account for nearly 20 per cent of sales.
Rural India outpaced urban centres in passenger vehicle sales in 2025, recording a growth of 12 per cent compared with 8 per cent in cities.
Two-wheeler sales volume is expected to grow 5-6 per cent this fiscal, while that of passenger vehicles to see a 2-3 per cent rise, following the GST rates rationalisation on automobiles, according to Crisil Ratings. The GST Council's decision to move to a two-rate structure of 5 per cent and 18 per cent, effective September 22, 2025, is a timely move that will revive demand for automobiles, Crisil Ratings said in a statement.
India's luxury auto market is rebounding after a slow start to 2025, with GST 2.0 emerging as the main catalyst.
The GST Council on Wednesday approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22.
Auto majors Maruti Suzuki, Tata Motors and Mahindra & Mahindra reported robust sales in September as reduced price tags owing to GST rationalisation led to record demand in the Navaratri period. The month also saw Tata Motors and Mahindra & Mahindra settling at number two and three positions, respectively in vehicle wholesales ahead of Hyundai Motor India.
However, Enfield said Bajaj was celebrating too early.
With gains of over 28 per cent, Hero MotoCorp has emerged as the best-performing largecap automotive stock over the past three months. The rally has been driven by an improved outlook for the rural segment, higher demand during the ongoing festival season, and rising affordability following cuts in goods and services tax (GST) rates.
The small sports utility vehicle (SUV) segment - comprising models less than 4 metres in length - could witness the "maximum" growth among all categories in the coming months following the recent goods and services tax (GST) rate rationalisation, Tarun Garg, chief operating officer of Hyundai Motor India (HMIL), said.
Some of the key names include: Maruti, M&M, Ashok Leyland, Britannia, Ultratech, JK Cement, Havells, Voltas, Amber, Metro, Trent, LemonTree, Indian Hotels, Niva Bupa, HDFC Life, IGL, Acme Solar, Suzlon, Swiggy, Delhivery, ICICI Bank, HDFC Bank, Bajaj Finance, Shriram Finance," according to a report by Motilal Oswal Financial Services.
New lower GST rates kicked in from Monday, resulting in a slashing of prices of as many as 375 items ranging from toothpaste and shampoo to cars and television sets, a move seen as an attempt to boost consumption to cushion an economy facing tariff headwinds. Tax rates of 5, 12, 18, and 28 per cent have been clubbed into two rates of 5 per cent and 18 per cent, resulting in a reduced price of 99 per cent of daily use items.
Any defect identified by the expert would have to be rectified within one month, failing which compensation of 5,000 per day would be payable.
The Jawa 42 FJ 350 cc was launched at a surprising price of 199,142 ex-showroom Delhi, reports a nostalgic Rajesh Karkera/Rediff.com.
It has been seven months since the iconic motorcycle manufacturers, Harley-Davidson and Triumph, embarked on their journey in India with the backing of partners Hero MotoCorp and Bajaj Auto. According to data shared by the Indian majors, both brands are already creating ripples in the above 350cc category. The increase in sales has prompted a ramp-up in production and even the doubling of retail touchpoints for one of them.
Indian motorcycle maker Royal Enfield on Tuesday announced starting a manufacturing unit and a showroom in Bangladesh, marking a major industrial development in the neighbouring country where the former prime minister Sheikh Hasina fled in August after weeks-long protests against her. The manufacturing facility in Chauddagram in Cumilla district is Royal Enfield's sixth outside India and besides the one in Tamil Nadu. Royal Enfield, the global leader in the mid-size motorcycle segment, has set up the facility in collaboration with IFAD Motors.
What has hit sentiment further is a draft proposal by the government to increase vehicle insurance premiums for financial year 2022-23 (FY23). Third-party motor insurance premiums have not been increased over the last two years and if this is approved, insurance costs for specific segments could rise by a fifth. The worst impacted is the 350cc and above two-wheeler segment, where premiums are up 21 per cent. Royal Enfield (Eicher Motor) is the market leader in the segment. The premiums in the 150-350cc two-wheeler category are also being inc
John Surtees, the only man to win world championships on two wheels and four, died on Friday at the age of 83, his family said in a statement.
Honda Motorcycle and Scooter India (HMSI), India's second-largest two-wheeler maker, on Wednesday revealed its electric vehicle (EV) roadmap, which includes setting up a dedicated EV factory, launching the first two EVs in 2023-24, and establishing 6,000 battery exchange points in the country. HMSI plans to establish a specialised unit for the manufacturing of electric vehicles (EVs), named 'Factory E', at its Narsapura plant located in Karnataka. Factory E will be created by converting an existing production line that currently manufactures internal combustion engine (ICE) vehicles, said Atsushi Ogata, HMSI managing director and chief executive officer.
The growth momentum that started during the festival season is likely to sustain in the new year, reports Arindam Majumder.
Irdai has proposed to increase the Motor Third Party premium rates for cars below 1000 cc to Rs 2,120 from the existing Rs 1,850 for the fiscal 2019-20.
In one of the most-awaited acts of the day, the women constables, in their debut, created some stunning formations, such as "fish riding, side riding, faulaad, peacock and Saptarishi", that dropped jaws and drew cheers. Now this is what we call women power!
Cruising comfortably in the 70s, Royal Enfield sputtered to a stop in the 90s, before its comeback in the first decade of the 21st century.
After 10 long years, Bajaj Auto has finally unveiled the next generation Pulsar, which is not only a huge step forward but will redefine the motorcycle industry.
The Indian bike market is ready to witness a flurry of launches in the 250-350cc segment. Here's the list of all these new performance bikes, which you can expect over the next couple of years.
Insurance of vehicle, including cars and bikes, will become costlier from April 1 as insurance regulator Irdai has decided to increase premiums by up to 40 per cent from the next fiscal.
The all-new bikes with a 500 cc engine will target exports, while the 350 cc engine bikes will be marketed in the domestic market from the current financial year.
We take a look at vintage two-wheelers on display at the just-concluded Auto Expo 2016.
Enfield enjoys almost the entire 250-350 cc motorcycle market in country
The Interceptor 650 and Continental GT 650 have been game changers in the upper part of the mid-size segment, with compelling style and highway capability.
'The fundamentals look strong, but we will have to see if they translate into actual demand.' 'Because the April-May marriage season didn't see much sales due to the lockdown.'
'Belonging to a Muslim family, I obviously had my own set of issues to deal with but I don't remember my father saying 'no' to anything.'
Royal Enfield at the moment is working on two new platforms for India and other markets. The first new bike on this platform will be the Himalayan, which is a trademark registered by the company.
The no-equity partnership will develop a range of mid-capacity 250-750cc motorcycles.
It's the first time in its 178-year-old history that the iconic British motorcycle firm owned by the Bloor family has got into an alliance. Three years after announcement, the two companies formally signed on the dotted lines on Friday for a long-term partnership, which aims to achieve global scale in a segment in which Royal Enfield has head-start.
