The Indian auto industry celebrates a blockbuster festive season as October 2025 car sales soar past expectations, marking one of the strongest months in recent years.
Introduction: Festive Tailwinds Drive Record Growth
The Indian passenger vehicle (PV) market witnessed a phenomenal surge in October 2025, fueled by festive-season optimism, new product launches, and GST-led affordability improvements. OEMs capitalized on the Navratri–Diwali window, aggressively pushing inventory to dealerships and meeting pent-up demand across urban and semi-urban regions.
Total industry wholesales touched around 4.67 lakh units, up sharply from 3.78 lakh in September 2025 — representing a month-on-month (MoM) growth of nearly 23.5%. Year-on-year (YoY), the industry expanded by over 16%, underlining the resilience of consumer demand despite broader macroeconomic uncertainties.
SUVs continued to anchor the market, contributing over 62% of total volumes, while entry-level hatchbacks and compact sedans staged a mild comeback. The combined effect of festive sentiment and better financing availability made October 2025 one of the most significant months of the decade for the automotive sector.
Market Overview: Momentum Accelerates Ahead of Diwali
| Parameter | Sep’25 | Oct’25 | MoM Growth |
|---|---|---|---|
| Total PV Sales | 3,78,453 | 4,67,808 | +23.5% |
| YoY Growth (vs Oct’24) | — | — | +16.2% (approx.) |
| SUV Share | 60% | 62% | +2 pp |
| Hatchback Share | 25% | 23% | -2 pp |
| EV Share | 3.1% | 3.5% | +0.4 pp |
The overall rise in October’s sales volume reflects both dealer restocking and strong retail traction, particularly in Tier-2 and Tier-3 markets. This period also benefited from extended loan tenures and low-interest festive schemes, which bolstered consumer confidence.
OEM-Wise Performance: Top 10 Manufacturers
| Rank | OEM | Oct’25 Sales | Sep’25 Sales | MoM Growth | Oct’24 Sales | YoY Growth | Market Share (Oct’25) |
|---|---|---|---|---|---|---|---|
| 1 | Maruti Suzuki | 1,76,318 | 1,32,821 | +32.7% | 1,59,591 | +10.5% | 37.8% |
| 2 | Mahindra | 71,624 | 56,233 | +27.4% | 54,504 | +31.4% | 15.3% |
| 3 | Tata Motors | 61,134 | 59,667 | +2.5% | 48,133 | +27.0% | 13.1% |
| 4 | Hyundai | 53,792 | 51,547 | +4.4% | 55,568 | -3.2% | 11.5% |
| 5 | Toyota | 40,257 | 27,089 | +48.6% | 28,138 | +43.1% | 8.6% |
| 6 | Kia | 29,556 | 22,700 | +30.2% | 22,753 | +29.9% | 6.3% |
| 7 | Skoda | 8,252 | 6,636 | +24.4% | 4,079 | +102.3% | 1.8% |
| 8 | MG Motor | 6,397 | 6,728 | -4.9% | 7,045 | -9.2% | 1.4% |
| 9 | Honda | 6,394 | 5,305 | +20.5% | 5,546 | +15.3% | 1.4% |
| 10 | Renault | 4,672 | 4,265 | +9.5% | 3,870 | +20.7% | 1.0% |
Brand-Wise Analysis and Insights
1. Maruti Suzuki – Strong Festive Comeback
Sales: 1,76,318 units | MoM: +32.7% | YoY: +10.5%
After a modest September, Maruti Suzuki bounced back powerfully, crossing 1.76 lakh units in October. Strong retail traction for models like Brezza, Fronx, and Baleno offset subdued small-car demand. However, the brand’s market share slipped to 37.8% (from 40.1% YoY) due to intensifying SUV competition. Maruti remains the volume leader but faces sustained pressure from Tata and Mahindra in the urban SUV space.
2. Mahindra – SUV Powerhouse on Full Throttle
Sales: 71,624 units | MoM: +27.4% | YoY: +31.4%
Mahindra delivered another outstanding month, riding on strong demand for Scorpio-N, Thar, and XUV700. The company continues to run at near-full production capacity. The new XUV 3XO and Bolero Neo+ also contributed incremental volumes. Mahindra’s market share rose to 15.3%, its highest in years, consolidating its position as the country’s SUV leader.
3. Tata Motors – Stable Growth, EV Momentum
Sales: 61,134 units | MoM: +2.5% | YoY: +27.0%
Tata Motors maintained steady performance, driven by consistent demand for Nexon, Punch, and Harrier/Safari. The EV lineup — especially Tiago.ev and Nexon EV — contributed meaningfully to volumes. Although MoM growth was modest, Tata’s steady 27% YoY increase and rising EV mix strengthen its premium mass-market appeal.
4. Hyundai – Holding Ground Amid Challenges
Sales: 53,792 units | MoM: +4.4% | YoY: -3.2%
Hyundai registered a mild recovery with strong demand for Creta and Exter, supported by festive editions. However, its sedan and hatchback portfolio (i20, Verna, Grand i10 Nios) continues to face volume fatigue. Market share fell to 11.5%, down 2.4 percentage points YoY — reflecting the growing tilt toward domestic SUV-focused OEMs.
5. Toyota – Stellar Festive Surge
Sales: 40,257 units | MoM: +48.6% | YoY: +43.1%
Toyota recorded one of its best months in India, crossing the 40,000 mark for the first time in 2025. Strong wholesales of Innova Hycross, Urban Cruiser Hyryder, and Fortuner powered the growth. Toyota’s hybrid strategy continues to pay off, appealing to urban buyers seeking fuel-efficient yet powerful alternatives. Its market share rose to 8.6%, up 1.6% YoY.
6. Kia – Steady Recovery
Sales: 29,556 units | MoM: +30.2% | YoY: +29.9%
Kia bounced back with double-digit growth, driven by the Sonet, Seltos facelift, and Carens MPV. Aggressive festive promotions helped offset pricing pressure in the subcompact SUV space. With a 6.3% market share, Kia remains a consistent mid-tier performer with a loyal urban base.
7. Skoda – Record-Breaking Year
Sales: 8,252 units | MoM: +24.4% | YoY: +102.3%
Skoda doubled its volumes YoY, thanks to Kushaq and Slavia. The Czech automaker’s localization strategy is yielding dividends, making it one of the fastest-growing brands in 2025. Skoda also benefited from strong brand perception among premium sedan buyers, reclaiming relevance in the ₹15–25 lakh bracket.
8. MG Motor – Slight Dip, EV Resilience
Sales: 6,397 units | MoM: -4.9% | YoY: -9.2%
MG Motor experienced a soft month due to limited supply of ZS EV and Comet EV. However, the brand continues to hold a niche in the urban EV space. MG’s upcoming new-generation Hector lineup is expected to reinvigorate demand in late Q4.
9. Honda – Stable Return to Form
Sales: 6,394 units | MoM: +20.5% | YoY: +15.3%
Honda Cars India maintained steady growth with strong retail traction for Elevate and City facelift. Its MoM growth of 20.5% signals a sustained recovery. Honda’s challenge remains expanding its SUV portfolio to stay relevant in a rapidly SUV-tilting market.
10. Renault – Gradual Recovery
Sales: 4,672 units | MoM: +9.5% | YoY: +20.7%
Renault posted modest gains driven by festive discounts and rural demand for Kiger and Triber. However, it remains a small-volume player. The brand’s upcoming new-generation products under development for 2026 will be critical for a long-term turnaround.
Emerging & Niche Players
-
Volkswagen: At 4,048 units, VW saw a 45.6% MoM jump but declined YoY. Its Taigun and Virtus continue to maintain a premium niche.
-
Nissan: With 2,615 units, Nissan grew 58.3% MoM, supported by Magnite’s festive push. Yet, overall share remains low at 0.6%.
-
Citroën: The French automaker doubled its sales YoY, led by eC3, posting 1,426 units in October.
-
Jeep: Marginal growth to 329 units, largely steady month-over-month.
Market Share Landscape: Changing Dynamics
| OEM | Market Share (Oct’25) | Market Share (Oct’24) | Change (pp) |
|---|---|---|---|
| Maruti Suzuki | 37.8% | 40.1% | -2.3 |
| Mahindra | 15.3% | 13.7% | +1.6 |
| Tata Motors | 13.1% | 12.1% | +1.0 |
| Hyundai | 11.5% | 14.0% | -2.4 |
| Toyota | 8.6% | 7.1% | +1.6 |
| Kia | 6.3% | 5.7% | +0.6 |
| Skoda | 1.8% | 1.0% | +0.7 |
| MG Motor | 1.4% | 1.8% | -0.4 |
| Others Combined | 4.2% | 4.5% | -0.3 |
Key Insight:
The “Indian Big Six” (Maruti, Mahindra, Tata, Hyundai, Toyota, and Kia) together command over 92% of the PV market, up from 89% a year ago — a clear sign of market consolidation. Among them, Mahindra and Toyota are the biggest gainers, while Hyundai and Maruti saw marginal share erosion.
Segment-Wise and Thematic Trends
SUV Supremacy Continues
SUVs now contribute over 62% of all passenger vehicle sales, powered by models like Nexon, Creta, Scorpio-N, and Fronx. This dominance underscores a structural shift in buyer preferences toward larger, feature-rich vehicles.
EV Adoption on the Rise
Electric vehicle sales grew around 25% YoY, with Tata and MG maintaining leadership. The Tiago.ev and Comet EV are reshaping urban commuting preferences, while new entrants like Mahindra XUV400 add variety to the mix.
Premiumisation Trend Deepens
Mid- and premium-SUVs in the ₹15–25 lakh range — such as the XUV700, Hyryder Hybrid, and Kushaq — continue to find strong traction, indicating an upward movement in average transaction values.
Entry-Level Revival
Thanks to GST corrections and festive finance schemes, entry-level hatchbacks and sedans posted mild growth after months of stagnation. However, structural demand remains subdued in this price-sensitive category.
Outlook: November–December 2025 and Beyond
The industry enters the year-end with robust momentum. With Diwali spillover demand expected in early November and improved semiconductor supply, the last quarter of 2025 could set a new annual record for PV sales in India.
Key watchpoints include:
-
Sustained retail demand post-festive period
-
Continued strength in SUV and hybrid segments
-
Early signs of normalization in small-car volumes
-
OEM capacity utilization, especially for Mahindra and Tata
If the positive trajectory holds, India’s passenger vehicle market could close 2025 with over 45 lakh units sold, marking a historic all-time high.
Conclusion: A Festive Quarter to Remember
October 2025 will be remembered as the month the Indian auto market roared back to full throttle. The perfect confluence of festive sentiment, GST-driven affordability, and a strong product mix propelled the industry to record heights.
While Maruti Suzuki remains the undisputed leader, the real story lies in Mahindra’s rise, Toyota’s resurgence, and Tata’s EV leadership. The landscape is shifting toward premium, technology-led mobility, setting the tone for a dynamic 2026.
As India’s automotive growth engine revs into the new year, the message is clear — the road ahead is electrified, competitive, and full of promise.
