MUMBAI, INDIA - OCTOBER 18: On Dhanteras, auspicious day, galore radical purchased caller vehicles astatine the Car Showroom successful Thane, connected October 18, 2025 successful Mumbai, India.
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India's car manufacture posted its strongest month on record in October, underscoring a crisp rebound successful home depletion that could offset the interaction of the slowdown successful exports to the U.S.
Total retail income crossed each conveyance segments — from cars to tractors — were up 40.5% from a twelvemonth earlier, information from the Federation of Automobile Dealers Associations showed.
"Both rider vehicles and two-wheelers achieved beingness highs, signaling renewed user assurance and beardown economical undercurrents," said C.S. Vigneshwar, President of the commercialized body, successful the release.
India's automotive manufacture contributes 7.1% to the nation's gross home product and nearly fractional of manufacturing GDP, according to government data. The state is the fourth-largest automobile producer globally. Exports to the U.S. relationship for 2% of India's GDP.
Japanese carmaker Maruti Suzuki India and South Korea's Hyundai Motor India predominate the home car income market, followed by section car majors similar Tata Motors and Mahindra & Mahindra.
Passenger conveyance income grew 11% twelvemonth connected twelvemonth to 557,000 units successful October, portion income of scooters and motorcycles surged 52% to 3.15 million, driven by agrarian demand, goods and services taxation reductions, and the festive rush.
Dealers reported "stronger footfalls and amended sentiment starring to highly precocious conversion," FADA noted.
Rural buyers steer recovery
Private and household spending present accounts for much than 60% of India's GDP successful fiscal twelvemonth 2025 — a level comparable to developed economies specified arsenic the United States and the United Kingdom — reducing the country's reliance connected exports.
The rebound successful home request could assistance offset the antagonistic interaction of the steep U.S. tariffs connected Indian goods imposed since August, analysts say.
In September, the Indian authorities announced widespread GST cuts to spur demand, including lowering taxes connected tiny cars and two-wheelers to 18% from 28%.
According to FADA data, agrarian request stood out: income of rider vehicles successful smaller towns grew implicit 3 times faster than successful municipality centers, portion two-wheeler income astir doubled municipality growth.
Dealers of two-wheelers and cars, particularly successful agrarian India, expect beardown request to proceed implicit the adjacent 3 months, said the commercialized assemblage of automobile dealers.
Any metropolis with much than 40% of its antheral colonisation moving successful agriculture is considered a agrarian country by FADA.
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