Imagine this: just three states in India were responsible for a staggering 30% of all auto sales during July-September 2025, even before the GST 2.0 reforms slashed prices on everything from scooters to SUVs. But here’s where it gets controversial: could this concentration of demand hint at deeper economic disparities across the country? Let’s dive into the numbers and explore what they really mean.
During the second quarter of the fiscal year 2025-26, India saw the sale of 10.39 lakh cars and a whopping 55.62 lakh two-wheelers. These figures, released by the Society of Indian Automobile Manufacturers (SIAM) on November 18, 2025, highlight the dominance of certain states in driving auto demand. Maharashtra led the pack with 1.32 lakh car sales, accounting for 12.7% of the total, while Uttar Pradesh topped two-wheeler sales with 6.93 lakh units, or 12.5% of the market.
And this is the part most people miss: Gujarat emerged as a consistent powerhouse, ranking among the top three markets across all vehicle categories—cars (8.5%), two-wheelers (8.0%), three-wheelers (9.8%), and commercial vehicles (9.4%). This raises an intriguing question: What makes Gujarat such a versatile auto hub?
Interestingly, car sales in India dipped during Q2 FY26 as buyers held off purchases awaiting the GST rate cuts implemented on September 22. The new GST structure reduced rates to 18% for small cars and 40% for SUVs, down from the previous four-slab system. Despite this, SIAM President Shailesh Chandra noted that September 2025 saw record-high sales for cars, two-wheelers, and three-wheelers—even with the GST changes affecting only the last nine days of the month.
The real GST impact became evident in October 2025. Auto sales, measured as dispatches to dealerships, jumped 17.2% year-on-year to 4,60,739 units, as manufacturers ramped up inventory to meet surging demand. Two-wheeler sales also rose by 2.1% to 21,64,276 units, though dealerships were already well-stocked.
Here’s the kicker: retail sales, tracked via vehicle registrations on the government’s VAHAN website, skyrocketed 40.5% year-on-year to an unprecedented 40,23,923 units in October 2025. Breaking it down:
– Two-wheelers: Up 51.76% YoY, 144.60% MoM to 31,49,846 units
– Three-wheelers: Up 5.43% YoY, 31.00% MoM to 1,29,517 units
– Cars: Up 11.35% YoY, 86.18% MoM to 5,57,373 units
– Commercial vehicles: Up 17.69% YoY, 49.52% MoM to 1,07,841 units
FADA President C.S. Vigneshwar aptly described October 2025 as a “landmark month” for India’s auto retail, fueled by a unique blend of reforms, festive fervor, and rural demand resurgence. After a sluggish start to September due to the GST transition, October witnessed a dramatic rebound, with pent-up demand, festive cheer, and tax-cut excitement converging to drive historic sales.
Now, here’s a thought-provoking question: As GST 2.0 continues to reshape the auto market, will the dominance of these three states persist, or will other regions catch up? Share your thoughts in the comments—let’s spark a discussion!