Navratri Festivities and GST 2.0 Reform Drive 2.66% YoY Growth in India’s Commercial Vehicle Sales

India’s commercial vehicle (CV) sector witnessed a notable revival in September 2025, with retail sales rising by 2.66% year-on-year, according to data released by the Federation of Automobile Dealers Associations (FADA). The surge in sales was largely driven by the Navratri festive period and the implementation of the GST 2.0 reform, which together fuelled a strong rebound in consumer sentiment and market activity.

Retail CV sales increased from 70,254 units in September 2024 to 72,124 units in September 2025, despite a month-on-month decline of 4.59%. During the Navratri period alone — from September 22 to October 2 — the segment recorded 33,856 units, marking a 14.84% jump from the same festive window last year.

Segment-wise, light commercial vehicles (LCVs) showed a healthy 6.03% YoY rise, climbing from 41,869 to 44,392 units. Medium commercial vehicles (MCVs) performed even better with an 11.65% growth, reaching 6,257 units compared to 5,604 a year ago. However, heavy commercial vehicles (HCVs) saw a 5.66% dip, falling from 22,694 units to 21,410 units. Meanwhile, the “other CV” category, which includes construction equipment vehicles, dropped by 25.29%.

FADA’s report also revealed a shift in the fuel-wise market composition. Diesel continues to dominate with 81.83% market share, followed by CNG/LPG at 11.81%, petrol/ethanol at 4.11%, and electric vehicles at 2.18%. Urban areas accounted for 52.6% of total CV sales, while rural regions contributed 47.4%.

According to Sai Giridhar, Vice President of FADA, September 2025 stood out as an exceptional month for India’s automobile retail market. He explained that the initial weeks were subdued as buyers awaited GST 2.0 reforms, but sales spiked dramatically once the new tax regime was announced, coinciding with Navratri celebrations. “The reduction in GST rates, coupled with festive demand, led to record-breaking footfalls and deliveries,” he said.

Looking ahead, FADA anticipates an even stronger October performance, buoyed by the ongoing festive season leading into Dhanteras and Diwali. With stable policy rates, a robust monsoon, and revived consumer confidence, the industry expects this 42-day festive window to mark one of the most successful sales periods in India’s automotive history.