The October 2025 car sales report highlights a significant festive season surge in India’s automotive market. Maruti Suzuki firmly maintained its leadership, achieving domestic wholesales of 2,38,515 units – a 17.4% increase year-on-year. Meanwhile, Mahindra set a new record by selling 71,624 SUVs in October, marking the highest monthly SUV sales in its history and a notable 31% growth year-on-year.

Maruti Suzuki’s strong sales performance reflects its continued dominance in the entry-level and compact car segments, buoyed by the recent GST 2.0 tax reforms that reduced prices on smaller vehicles, encouraging buyers to seize festive-season opportunities. Chairman R.C. Bhargava remarked on the market optimism fueled by these reforms and the increased demand for small cars.

Mahindra’s achievement, led by its popular Scorpio and XUV models, underscores the rising trend toward SUVs in India. The company’s total vehicle sales, including commercial vehicles and exports, reached 1,20,142 units, reporting 26% growth year-on-year. Nalinikanth Gollagunta, CEO of the Automotive Division at Mahindra & Mahindra Ltd, stated, “In October, we achieved SUV sales of 71,624 units, a growth of 31 per cent, which is the highest SUV sales we have clocked ever in a month.”

Tata Motors held a strong position in third place with 73,877 units sold, surpassing Mahindra and Hyundai in overall sales for the month. Tata’s focus on electric vehicles and compact SUVs has contributed to its steady rise. The GST-induced price cuts and festive sentiment have catalyzed demand across all segments, especially for vehicles with modern tech and safety features.

This surge in sales represents a major milestone in the Indian automotive industry, driven by a favorable regulatory environment and a shift in consumer preferences towards SUVs and fuel-efficient small cars. The GST 2.0 policy, effective from September 22, 2025, lowered the tax rate on sub-4 meter petrol cars (≤1200 cc) and diesel cars (≤1500 cc) to 18% from the earlier 28%, removing the compensation cess entirely. This move directly benefited manufacturers like Maruti Suzuki and Tata Motors, driving up retail sales significantly.

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As the festive season continues, the automotive market shows strong momentum heading into the final quarter of the fiscal year. These record-breaking figures from Mahindra and Maruti underscore the dynamic shifts reshaping India’s passenger vehicle landscape and highlight the robust demand for SUVs and smaller, affordable cars.

Readers and industry observers can look forward to further growth and innovation as brands compete to meet evolving buyer expectations amid the ongoing economic recovery.