Disclaimer: Data compiled from industry sources and manufacturer reports. While due care has been taken, minor variations may exist due to differing dispatch cycles.
Festive Winds and Fiscal Tailwinds Lift Sales 5.5 Percent Year-on-Year
September 2025 was about recovery and rhythm. The Indian passenger vehicle market grew by 5.5 percent year-on-year with total dispatches of 3,78,457 units. It was a month of steady ignition, as the market shifted into a higher gear ahead of the festive season.
For much of the month, buyers waited on the sidelines for clarity on the revised GST structure. When the new rates were implemented on September 22, the effect was immediate. Footfalls at dealerships surged, coinciding perfectly with Navratri festivities. Compact SUVs and mid-size sedans led the surge, as lower prices triggered a wave of postponed purchases.
Manufacturers quickly responded by increasing dispatches and dealers began building inventory for the coming festive run. September may not have been spectacular, but it laid the groundwork for what could be a strong October, especially with Dhanteras and Diwali around the corner.
Maruti Suzuki Still Leads, but the Grip is Loosening
Maruti Suzuki retained its leadership, but the numbers tell a story of strain. Domestic sales dropped 8.4 percent year-on-year to 1,32,821 units. Market share fell to 35.1 percent compared to 40.4 percent a year ago.
The shift in buyer preference toward larger and feature-rich SUVs continues to hurt Maruti. The Brezza and Grand Vitara have held their ground, but the portfolio still lacks the depth that Tata and Mahindra now possess. A modest 1.2 percent month-on-month rise indicates stability, but the long-term picture points to increasing pressure on the country’s volume leader.
Tata Motors Finds its Sweet Spot
Tata Motors was the standout performer in September. The company recorded 59,667 units, up 45.3 percent year-on-year and 45.5 percent month-on-month, reclaiming the number two spot.
The new GST structure played directly into Tata’s strengths. A large part of its internal combustion range benefits from the sub-four-metre tax bracket, which includes models like the Nexon, Punch, and Altroz. The Tiago EV added incremental volume and demonstrated how Tata is quietly consolidating its early lead in the EV space.
This was Tata’s best-ever monthly sales performance. With new products lined up for launch and strong festive demand expected, the company’s momentum looks structural rather than seasonal.
Mahindra Strengthens its SUV Muscle
Mahindra and Mahindra continued to build on its SUV dominance with 56,233 units, up 10.1 percent year-on-year and 42.7 percent month-on-month. The Scorpio-N, XUV700, and Thar remain the pillars of Mahindra’s success, appealing to both urban buyers and smaller towns.
The company’s investments in production capacity and supply chain efficiency are paying off. Deliveries are now matching demand more consistently. Mahindra’s market share rose to 14.9 percent, reinforcing its image as the go-to brand for SUVs in India.
Hyundai Stable but Feeling the Heat
Hyundai reported 51,547 units, a marginal 0.9 percent rise year-on-year. The performance looks stable, but competition is getting tighter.
The Creta continues to shine, setting a new all-time high for monthly volume and retaining its segment leadership. However, models such as the i20 and Venue are beginning to lose traction as fresher rivals arrive with sharper pricing and better features. The next phase of Hyundai’s growth will depend on its refreshed Creta lineup and the rollout of its next generation of electric vehicles.
Toyota Maintains Course with Hybrid Strength
Toyota recorded 27,089 units, up 13.8 percent year-on-year but slightly lower than August. The company’s hybrid strategy continues to deliver results. The Innova HyCross and Urban Cruiser Hyryder remain its key volume drivers, appealing to buyers who want long-term efficiency and reliability.
Toyota’s partnership with Maruti ensures a steady supply and product depth. With a 7.2 percent market share, Toyota is not chasing volume but is building a loyal and high-value customer base.
Kia Holds Steady but Needs a New Push
Kia India posted 22,700 units, a 3.5 percent decline year-on-year but a 15.8 percent improvement month-on-month. The Seltos facelift helped maintain momentum, while the Sonet and Carens continue to perform consistently.
However, the absence of major new launches has limited growth. Market share held at 6 percent, showing resilience but also signalling the need for a fresh spark to move forward.
MG and Škoda Register Strong Gains
MG Motor continued its steady climb with 6,728 units, up 46.6 percent year-on-year. The Hector and ZS EV are its backbone, while the brand’s future lineup, including the Cyberster and M9 MPV, is generating strong anticipation.
Škoda posted 6,636 units, doubling its performance from last year with a 101 percent increase. The Slavia and Kushaq continue to benefit from higher localisation and an expanding dealer network. Both MG and Škoda now hold 1.8 percent market share, a meaningful figure for brands that were once on the fringes of the Indian market.
Honda, Renault, Volkswagen and the Rest
Honda recorded 5,305 units, down 6.5 percent year-on-year but up 37.8 percent month-on-month, largely due to demand for the Elevate SUV. The Amaze remains relevant in smaller towns, and momentum seems to be slowly returning.
Renault’s 4,265 units marked a sharp 31.4 percent drop, while Volkswagen managed 2,780 units, down 18.1 percent. Nissan and Citroën reported 1,652 and 734 units respectively, while Jeep remained at 300 units. These brands continue to struggle for scale and attention in an increasingly crowded market. Without new products or locally-built EVs, their path forward remains uncertain.
Market Overview
Total Passenger Vehicle Sales: 3,78,457 units (up 5.5 percent year-on-year, up 15.5 percent month-on-month)
Top 3 Manufacturers: Maruti Suzuki 35.1 percent, Tata Motors 15.8 percent, Mahindra 14.9 percent
SUV Market Share: Nearly 60 percent of total sales
Hatchbacks and Sedans: Marginal recovery post-GST cuts, but SUV preference remains firm
The overall picture is clear. The market is now shaped by SUVs, and the brands with the strongest SUV portfolios are the ones gaining share. Maruti’s declining numbers underline this shift, while Tata and Mahindra continue to capitalise on it.
Consumer Trends
The GST reform has provided a clear lift to demand, especially in the compact SUV and EV segments. Buyers are now prioritising features, technology, and safety over traditional brand loyalty. Demand from Tier-2 and Tier-3 cities continues to add meaningful volume. Electric vehicles still account for less than three percent of passenger vehicle sales, but interest and awareness are growing rapidly.
Final Thoughts
September 2025 was not about breaking records. It was about confidence returning to the market. The GST cut, festive sentiment, and a new generation of value-conscious yet tech-focused buyers have brought momentum back.
Maruti remains the leader, but the story of the month belongs to Tata and Mahindra, both riding the SUV wave with conviction. As the festive season gathers pace, October could turn out to be one of the strongest months of the fiscal year. The market has found its rhythm again, and India’s auto story is once more in full motion.
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