Big boost to auto sector? Mahindra & Mahindra, Bajaj Auto, Hyundai Motor India, Toyota Kirloskar see record sales, GST 2.0 or festivals, what's behind it?

The reduction in GST rates from 28% to 18% for small cars had a positive impact on auto sector sales.

India’s auto sector saw a strong growth in September 2025 after recent GST rate cuts and before the festive season. All major segments like passenger vehicles, two-wheelers, tractors, and commercial vehicles posted healthy year-on-year sales gains.

The first half of the month saw muted retail activity due to a slower pre-festive period and the GST cut’s effective date. After the effective date of GST reforms demand picked up from September 22 onwards. Manufacturers like Mahindra and Bajaj Auto, Toyota Kirloskar, Hyundai Motor reported strong sales momentum, supported by improved customer sentiment and festive buying.

Toyota Kirloskar Motor Sales

Toyota Kirloskar Motor on Wednesday sai