September 2025 is the month India’s auto market hit the reset button. A powerful combination of pre-festive buying and the GST 2.0 rate rationalisation that took effect on September 22, 2025 catalysed demand. The new tax structure reduces GST on small cars (sub-4-metre, up to 1,200 cc petrol/1,500 cc diesel) to 18% and introduces a 40% slab for larger/luxury vehicles—replacing the earlier 28% plus compensation cess regime. Multiple official and industry sources confirm this policy architecture and timing.
Just as importantly, the first signs of impact showed up in retail: dealers reported a sharp Navratri-period spike in vehicle sales immediately after the new rates kicked in on September 22—the first day of the festival window this year—signalling how policy can flip consumer sentiment almost overnight.
Against that backdrop, the Top 25 Selling Cars in India for September 2025 reveal three big themes:
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SUVs still dominate (≈58% of Top-25 volumes), but the winners are those that balance features with tax efficiency.
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Sedans are back on the radar thanks to tax relief and value-for-money credentials—Maruti Dzire’s surge is not a one-off.
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Hatchbacks bifurcate: budget nameplates struggle, but smartly specced, finance-friendly models revive.
The Top 25 list (September 2025)
(Data as provided by you; row 24 and 25 are duplicate entries for Alto. Analysis below uses unique models unless stated.)
| Rank | OEM | Bodystyle | Model | Sep’25 | Sep’24 | Y-o-Y |
| 1 | Tata | SUV | Nexon | 22,573 | 11,470 | 97% |
| 2 | Maruti Suzuki | Sedan | Dzire | 20,038 | 10,853 | 85% |
| 3 | Hyundai | SUV | Creta | 18,861 | 15,902 | 19% |
| 4 | Mahindra | SUV | Scorpio | 18,372 | 14,438 | 27% |
| 5 | Tata | SUV | Punch | 15,891 | 13,711 | 16% |
| 6 | Maruti Suzuki | Hatchback | Swift | 15,547 | 16,241 | -4% |
| 7 | Maruti Suzuki | Hatchback | Wagon R | 15,388 | 13,339 | 15% |
| 8 | Maruti Suzuki | SUV | Fronx | 13,767 | 13,874 | -1% |
| 9 | Maruti Suzuki | Hatchback | Baleno | 13,173 | 14,292 | -8% |
| 10 | Maruti Suzuki | MUV | Ertiga | 12,115 | 17,441 | -31% |
| 11 | Mahindra | SUV | Thar | 11,846 | 8,843 | 34% |
| 12 | Hyundai | SUV | Venue | 11,484 | 10,259 | 12% |
| 13 | Maruti Suzuki | Van | Eeco | 10,173 | 11,908 | -15% |
| 14 | Toyota | MUV | Innova + Hycross | 9,783 | 8,052 | 21% |
| 15 | Mahindra | SUV | XUV 700 | 9,764 | 9,646 | 1% |
| 16 | Mahindra | SUV | XUV 3XO | 9,032 | 9,000 | 0% |
| 17 | Kia | SUV | Sonet | 9,020 | 10,335 | -13% |
| 18 | Tata | Hatchback | Tiago | 8,322 | 4,225 | 97% |
| 19 | Toyota | SUV | Hyryder | 7,608 | 5,385 | 41% |
| 20 | Kia | MUV | Carens | 7,338 | 6,217 | 18% |
| 21 | Kia | SUV | Seltos | 5,816 | 6,959 | -16% |
| 22 | Maruti Suzuki | SUV | Grand Vitara | 5,698 | 10,267 | -45% |
| 23 | Hyundai | SUV | Exter | 5,643 | 6,908 | -18% |
| 24 | Maruti Suzuki | Hatchback | Alto | 5,434 | 8,655 | -37% |
Segment split (by units, unique models): SUVs ≈ 58.5%, hatchbacks ≈ 20.5%, MUV/van ≈ 14%, sedans ≈ 7%. SUVs still carry the market, but the Dzire has single-handedly kept sedans on the scoreboard.
GST 2.0: What changed, and why it matters to this ranking
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Effective September 22, 2025, small cars (sub-4-metre, petrol ≤1,200 cc, diesel ≤1,500 cc) move to 18% GST. Prior to this, cars generally sat at 28% plus compensation cess varying by type, which pushed effective levies well beyond 28%. Large and premium vehicles shift to a 40% slab (no cess), simplifying taxation.
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Government communication and independent policy briefings confirm the broader rate rationalisation and the two-slab architecture (5% and 18%) plus a 40% de-merit rate, replacing the older 12% and 28% slabs in most cases.
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Dealers and trade bodies attribute a late-September retail upswing to the new rates coinciding with Navratri’s start—consumers advanced purchases to capture post-GST prices.
Important correction to a common misconception: Multiple credible sources indicate reductions to 18% for qualifying small cars, not 18%→12% for cars. The 12% slab has generally been removed in favour of 5%/18% plus a 40% de-merit rate for luxury/sin goods, with sector-specific carve-outs elsewhere.
Implication for September’s Top 25:
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Models inside the small-car thresholds—think Nexon, Punch, Dzire, Swift, Wagon R, Baleno, Tiago, Alto, Fronx, Venue, Sonet, Exter—are set to benefit the most on ex-showroom pricing into October–November.
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Larger nameplates like Creta, Scorpio, Thar (engine capacity beyond small-car norms), Innova/Hycross, Seltos, Grand Vitara, XUV700, Hyryder, Carens likely sit in the higher 40% bracket—but note that for several of these, the move from 28%+cess to a flat 40% can still be neutral-to-marginally favourable depending on pre-GST effective tax and discounts.
OEM scoreboard (by Top-25 units, unique models)
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Maruti Suzuki (~39–40%): A broad-base play—sedan, hatch, sub-4 m SUV, van, MUV. Dzire is the month’s flagship, but note the drag from Ertiga, Alto, Grand Vitara.
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Mahindra (~17%): The body-on-frame specialist now has breadth. Scorpio and Thar are lifestyle-meets-utility heroes; XUV700 holds steady; XUV 3XO scales nicely.
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Tata (~16–17%): Nexon and Punch anchor the SUV story; Tiago’s resurgence underscores hatchback resilience when EMIs drop and AMT/CNG variants are accessible.
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Hyundai (~12–13%): Creta’s metronomic performance continues; Venue is steady; Exter cools—this will merit close post-GST watching.
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Kia (~8%): Carens is the quiet gainer; Sonet and Seltos softness hints at intense sub-compact and mid-SUV competition.
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Toyota (~6%): Hyryder’s hybrid proposition is clicking; Innova/Hycross remains the default multi-row choice.
Model-by-model analysis (why each nameplate landed where it did)
1) Tata Nexon (22,573; +97%)
A calendar-year-best type print that reaffirms Nexon’s mass-appeal formula: safety credentials, broad powertrain palette (including EV siblings for halo), and strong variant stair-steps around key price points. Sub-4-metre dimensions put it in the 18% GST bucket—expect continued pricing agility into festive peaks.
2) Maruti Suzuki Dzire (20,038; +85%)
Fleet-friendly and private-buyer attractive, Dzire’s jump is the clearest demonstration of policy-meets-product. As a sub-4-metre, small-engine sedan, it directly benefits from the 18% GST rate. Expect Dzire to remain a top-three constant through the Diwali cycle as loan rates stabilise and operating costs remain low.
3) Hyundai Creta (18,861; +19%)
The segment benchmark keeps compounding on brand trust and cabin/feature execution. While it falls outside the small-car tax thresholds (and therefore into the higher slab cohort), Creta’s demand engine is mature enough to offset this with value-rich trims and finance schemes.
4) Mahindra Scorpio (18,372; +27%)
Mahindra’s fortress. A mix of rugged appeal and modern amenities continues to win semi-urban and rural markets while surprising in metros. The higher tax slab risk is balanced by brand pull and perceived durability; dealer wait times in some markets remain a feature, not a bug.
5) Tata Punch (15,891; +16%)
The micro-SUV formula still works. Punch benefits directly from the 18% GST regime and an accessible EMI envelope. It’s also a strong second-car option in metros and a first-car upgrade path in Tier-2 towns.
6) Maruti Swift (15,547; -4%)
A soft YoY print, but still high volumes. The broader hatchback segment is under attack from sub-compact SUVs; however, lower GST, updated variants and AMT/CNG availability keep Swift relevant. Watch Q4—if discounts deepen, Swift could stabilise.
7) Maruti Wagon R (15,388; +15%)
Wagon R’s packaging—tall-boy space, low running costs—remains sticky for Indian buyers. With 18% GST support, it’s set for steady climbs in value-driven markets.
8) Maruti Fronx (13,767; -1%)
A near-flat YoY that hints at consolidation after a strong 2024–25 run. The design-led proposition and sub-4-metre tax positioning mean it should regain momentum as festive advertising intensifies.
9) Maruti Baleno (13,173; -8%)
Facing crossfire from SUVs and sibling cannibalisation (Fronx), Baleno nonetheless sits in the sweet spot for post-GST affordability. Expect tactical variants/editions to arrest the decline.
10) Maruti Ertiga (12,115; -31%)
The month’s big surprise on the downside. Ertiga’s value case still exists, but competition from Carens and Innova’s aspirational pull is real. Fleet reorder cycles may also be elongating. A festive-season rebound is possible if finance offers sweeten.
11) Mahindra Thar (11,846; +34%)
Once a niche off-roader, now a lifestyle icon. Thar’s mix of capability and presence draws both enthusiasts and urban stylists. Engine capacities put it beyond “small car” norms; nonetheless, brand magnetism is potent enough to deliver growth.
12) Hyundai Venue (11,484; +12%)
A disciplined climber. Venue benefits directly from 18% GST, a wide powertrain spread and a strong automatic share. Competition is intense; however, the brand’s after-sales ecosystem preserves stickiness.
13) Maruti Eeco (10,173; -15%)
Fleet-tilted demand weakened YoY, but Eeco continues to be India’s default light people-mover/last-mile van. Any bottoming-out in MSME sentiment could flip this back to growth.
14) Toyota Innova + Hycross (9,783; +21%)
Innova’s franchise remains unshakeable. Even under the higher tax slab, reliability and comfort keep it the default choice for long-distance families and premium fleets; hybrid variants help with running-cost narratives.
15) Mahindra XUV700 (9,764; +1%)
A mature demand curve. Supply smoothing and feature updates maintain numbers; the segment is crowded, but XUV700’s safety/ADAS story still resonates.
16) Mahindra XUV 3XO (9,032; ≈flat)
A solid “new-gen” sub-compact entry that’s now normalising. With 18% GST tailwinds, watch for Q4 promotional bursts to push it back into five-figure territory.
17) Kia Sonet (9,020; -13%)
Competitive heat from Venue/Nexon/Punch and sibling Seltos is visible. Sonet should benefit from tax-efficient configurations, but it needs a sharper story—either feature-price rejigs or special editions.
18) Tata Tiago (8,322; +97%)
The stealth star. Tiago’s surge reflects affordability + AMT/CNG + finance alignment, now amplified by 18% GST. Expect sustained double-digit growth through the festive quarter.
19) Toyota Hyryder (7,608; +41%)
Hybrid credibility and Toyota’s frugal-running reputation are winning. Hyryder sits outside small-car limits, but the total-cost-of-ownership message blunts the slab impact. As petrol prices wobble, hybrids look wise.
20) Kia Carens (7,338; +18%)
Carens is quietly cannibalising multiple rivals by blending SUV styling with MPV utility. Families and fleet buyers like its space-to-price equation; we see more upside into Q4.
21) Kia Seltos (5,816; -16%)
A mid-cycle cool-off. The field has caught up on features, and there’s substitution risk from Creta/Grand Vitara/Hyryder. Tactical trims and finance schemes will determine year-end recovery.
22) Maruti Grand Vitara (5,698; -45%)
The month’s steepest decline among mainstream SUVs. Hybrid variants should be a strength, but competition, pricing optics and model-mix challenges weighed. This is the canary to watch for how mid-SUVs navigate the 40% slab era.
23) Hyundai Exter (5,643; -18%)
Sub-compact, design-forward—but the segment is crowded. With 18% GST support and Hyundai’s network, Exter can still pivot back with festive edition pushes.
24/25) Maruti Alto (5,434; -37%)
Entry hatchbacks face structural headwinds: SUV aspiration, safety-feature expectations, and higher ownership standards. Post-GST relief helps, but the brand may need a feature/tech refresh to rekindle first-time buyer love.
Note: Alto appears twice in the provided list; we treat it as one model for unique totals.
The biggest movers (and why)
Rocketing upward
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Tata Nexon (+97%) and Tata Tiago (+97%): Tata benefits at both ends of the price spectrum, boosted by sub-4-metre tax status for Nexon/Tiago variants, aggressive finance, and halo from the EV stable nudging showroom traffic.
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Maruti Dzire (+85%): The policy-perfect sedan—sub-4-metre, small-engine, wide availability, low running costs—will be a beneficiary of 18% GST going into the festive quarter.
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Toyota Hyryder (+41%) and Mahindra Thar (+34%): Two different value propositions winning simultaneously—fuel-sipping hybrid practicality and aspirational 4×4 lifestyle.
Under pressure
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Maruti Grand Vitara (-45%): A tough month in a crowded mid-SUV arena; pricing optics vs rivals are biting.
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Maruti Ertiga (-31%): Multi-row buyers are sampling alternatives (Carens; Innova’s hybrid cachet).
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Maruti Alto (-37%): Structural shift away from bare-bones hatches.
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Kia Seltos (-16%) and Hyundai Exter (-18%): Both need headline-grabbing variants or festive-season finance fireworks.
How GST 2.0 may rebalance segments through Q4 FY25
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Small-car uplift: With 18% GST and no compensation cess, sub-4-metre models should enjoy cleaner price points and easier EMI math. That is bullish for Nexon, Punch, Dzire, Swift, Wagon R, Baleno, Tiago, Alto, Exter, Venue, Sonet, Fronx, XUV 3XO.
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Mid/large-SUV resilience: While shifting to 40% could look punitive, remember that many of these vehicles previously bore 28% + cess—for some trims the new rate can be neutral to slightly favourable once OEMs re-optimise variant pricing. Value-dense models like Creta, Scorpio, Innova/Hycross will likely sustain.
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Festive acceleration: Early retail data from Navratri suggests a double-digit lift vs last year, closely tied to the rate go-live on September 22. Expect that momentum to carry into October–November
What to watch next (October–November 2025)
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Price lists and variant re-cuts: Expect OEMs to recalibrate ex-showroom prices and feature stacks to sit neatly at post-GST psychological thresholds (₹6.99 lakh, ₹9.99 lakh, ₹14.99 lakh, etc.).
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Sedan follow-through: If Dzire sustains >18–19k a month into Diwali, we could see renewed sedan aggression from rivals in early 2026.
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Hybrid narrative: Hyryder’s run shows there is demand for frugality without range anxiety; watch how Grand Vitara responds.
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Entry hatchbacks: Alto needs a freshness play—tech/features or aggressive festive finance—to avoid long-term attrition.
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Lifestyle SUVs: Thar’s rise indicates that aspirational purchases remain robust even with higher slabs—proof that desire often trumps tax in discretionary segments.
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Dealer inventory health: If the post-GST surge sustains, OEMs must align production smartly to avoid December discount hangovers.
Methodology and caveats
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All calculations (segment shares, OEM shares) are derived directly from the September 2025 dataset you supplied. Where totals are referenced, we treat duplicate entries conservatively (unique-model basis).
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Policy facts—rate levels, effective date, and structural changes—have been verified against official and reputable sources; note that the automotive slab specifics are framed as small cars at 18% and larger cars at 40%, not 18%→12% for cars as sometimes misreported
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Short-term retail traction is contextualised using festival-period reports indicating a step-up in sales post September 22.
Bottom line
The Top 25 Selling Cars in India for September 2025 reflect a market where policy, prices, and product are finally aligned. SUVs still write the main story, but the subplots are compelling: a sedan resurgence in Dzire, a hatchback comeback led by Tiago, and the quiet competence of models like Venue and Carens. With GST 2.0 lowering the barrier to entry for small cars and simplifying the tax landscape, expect Q4 to favour brands and nameplates that translate this policy tailwind into clear on-road savings and smarter variant positioning. The real test will be how mid-SUVs and multi-row vehicles hold share under the 40% slab; September suggests the strong will stay strong—but the price-value line will get sharper.




