The Indian passenger vehicle industry rebounded strongly in September 2025, signaling the arrival of festive momentum after a subdued August. OEMs ramped up deliveries to dealerships ahead of Navratri and Dussehra, resulting in one of the strongest monthly performances of the calendar year.
SUVs continued to dominate demand, while compact and entry-level segments began to show early signs of revival aided by GST-led price corrections.
Total Market Overview: September 2025 vs August 2025
Total Sales (Sep’25): 3,78,453
Total Sales (Aug’25): 3,27,719
MoM Growth: +15.5%
After two consecutive months of contraction, the market bounced back in September with a massive 15.5% month-on-month increase, as retail sentiment improved and OEMs pushed inventory in anticipation of festive-season footfalls. Volumes crossed the 3.75 lakh mark, marking the second-highest monthly tally of 2025 so far.
Manufacturer-Wise Performance Analysis
| Rank | OEM | Sep’25 Sales | Aug’25 Sales | MoM Growth | Market Share |
|---|---|---|---|---|---|
| 1 | Maruti Suzuki | 1,32,820 | 1,31,278 | +1.2% | 35.1% |
| 2 | Tata Motors | 59,667 | 41,001 | +45.5% | 15.8% |
| 3 | Mahindra | 56,233 | 39,399 | +42.7% | 14.9% |
| 4 | Hyundai | 51,547 | 44,001 | +17.1% | 13.6% |
| 5 | Toyota | 27,089 | 29,302 | -7.6% | 7.2% |
| 6 | Kia | 22,700 | 19,608 | +15.8% | 6.0% |
| 7 | MG Motor | 6,728 | 6,578 | +2.3% | 1.8% |
| 8 | Skoda | 6,636 | 4,971 | +33.5% | 1.8% |
| 9 | Honda | 5,305 | 3,850 | +37.8% | 1.4% |
| 10 | Renault | 4,265 | 3,015 | +41.5% | 1.1% |
| 11 | Volkswagen | 2,780 | 2,719 | +2.2% | 0.7% |
| 12 | Nissan | 1,652 | 1,384 | +19.4% | 0.4% |
| 13 | Citroën | 734 | 403 | +82.1% | 0.2% |
| 14 | Jeep | 297 | 210 | +41.4% | 0.1% |
1. Maruti Suzuki – Stability Amid Shifting Mix
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Sep’25 Sales: 1,32,820 (↑1.2% MoM)
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Market Share: 35.1%
Maruti maintained its leadership comfortably, though growth was modest compared to peers. Entry-level demand showed early recovery signs post-GST cuts, while SUVs such as Brezza, Fronx, and Grand Vitara continued to anchor volumes. The company’s share remained stable above 35%.
2. Tata Motors – Explosive Growth on Festive Push
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Sep’25 Sales: 59,667 (↑45.5% MoM)
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Market Share: 15.8%
Tata Motors delivered an exceptional month with strong wholesales driven by Nexon, Punch, and Harrier/Safari refreshes. Its EV portfolio also contributed steadily, reflecting consumer interest in cleaner mobility. Tata achieved its highest monthly volume for 2025, narrowing the gap with Maruti in urban markets.
3. Mahindra – Consistent Momentum Continues
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Sep’25 Sales: 56,233 (↑42.7% MoM)
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Market Share: 14.9%
Mahindra recovered sharply after August’s inventory correction. The Scorpio-N, XUV700, and Thar saw robust festive bookings, reaffirming Mahindra’s dominance in the SUV space. The company continues to operate near production capacity limits for key models.
4. Hyundai – Creta and Exter Lead Comeback
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Sep’25 Sales: 51,547 (↑17.1% MoM)
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Market Share: 13.6%
Hyundai regained momentum with renewed demand for Creta and the compact SUV Exter, though its sedan and hatchback segments remained soft. The launch of special festive editions supported MoM growth.
5. Toyota – Brief Pause After Strong Run
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Sep’25 Sales: 27,089 (↓7.6% MoM)
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Market Share: 7.2%
Toyota faced a temporary slowdown due to limited supply of Hycross and production alignment. Despite this, hybrids like Hyryder continue to sustain brand strength. Expect a rebound in October as inventory normalizes.
6. Kia – Moderate Growth Amid Intense Competition
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Sep’25 Sales: 22,700 (↑15.8% MoM)
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Market Share: 6.0%
Kia showed solid recovery driven by Sonet and Carens, though competitive pricing pressure in the compact SUV segment persisted. Its festive campaigns helped stabilize sales momentum.
Rising Stars
MG Motor – Steady EV Momentum
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Sep’25 Sales: 6,728 (↑2.3% MoM)
MG continued its consistent premium performance, supported by the ZS EV and Comet. The brand’s sustained volumes reflect an established niche in the urban EV segment.
Skoda – Sustained Surge
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Sep’25 Sales: 6,636 (↑33.5% MoM)
Skoda recorded another month of strong growth, powered by Slavia and Kushaq. The Czech brand’s steady upward trajectory is indicative of successful localization and brand revival.
Other Notable Movers
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Honda (↑37.8%) – Gained traction with Elevate SUV and refreshed City, marking a return to 5,000+ units.
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Renault (↑41.5%) – Benefited from seasonal demand and discount-led boosts for Kiger and Triber.
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Citroën (↑82%) – Though from a small base, the eC3 helped lift volumes.
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Nissan, VW, Jeep – All posted modest recoveries, but remain volume-light players.
Segment-Wise Market Trends
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SUV Dominance Intensifies: SUVs contributed over 60% of total volumes, led by Tata, Mahindra, Hyundai, and Maruti.
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Hatchbacks Revive Slightly: Entry-level cars saw upticks due to GST cuts and festive discounts.
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EV Growth Continues: Tata and MG together accounted for the bulk of EV sales.
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Premiumisation Trend: Skoda, Toyota, and MG show clear strength in the ₹15–25 lakh price band.
Market Share Comparison (Sep’25)
| OEM | Market Share |
|---|---|
| Maruti Suzuki | 35.1% |
| Tata Motors | 15.8% |
| Mahindra | 14.9% |
| Hyundai | 13.6% |
| Toyota | 7.2% |
| Kia | 6.0% |
| MG | 1.8% |
| Skoda | 1.8% |
| Others (combined) | 3.8% |
Conclusion & Outlook
September 2025 marked a clear turnaround for the Indian passenger vehicle market.
With volumes surging past 3.7 lakh units, the industry enters Q4 on a high note.
Tata and Mahindra emerged as the biggest gainers, reflecting the power of localized SUVs and strong retail channels.
The combination of festive sentiment, GST relief on small cars, and a stable macroeconomic backdrop bodes well for the months ahead. October is likely to continue the positive trajectory, potentially setting a new monthly record if retail momentum sustains through Diwali.
