New Delhi– Demand in India’s automobile sector surged in October, with commercial vehicles and two-wheelers recording strong retail growth driven by GST 2.0 tax reforms, festive buying, and improving rural markets, according to a report released Tuesday.
The commercial vehicle segment saw a pronounced rebound, posting a 17.7 percent year-over-year increase in retail volumes and a 49.5 percent rise compared to September 2025. Light commercial vehicles led the segment, with retail sales up 29.8 percent year-over-year and 64.3 percent on a sequential basis.
“This was driven by logistics demand from rural areas, GST reforms, and strong festive buying,” ICRA said in its report.
Medium and heavy commercial vehicles slipped 1.4 percent year-over-year in October, as fleet operators postponed purchases ahead of BS-VII emission norms. Even so, the segment recorded a 26 percent month-over-month gain, suggesting pent-up demand after the GST policy announcement.
The report noted that domestic commercial vehicle wholesale volumes also strengthened, increasing 11.4 percent year-over-year and 7.8 percent sequentially in October 2025. For the first seven months of FY 2026, wholesale volumes were up 4.5 percent, supported by rising freight activity and a revival in infrastructure projects.
ICRA expects commercial vehicle wholesale volumes to post year-over-year growth between 3 and 5 percent in FY 2026, backed by construction activity returning to pace and a stable economic outlook.
The two-wheeler market had an exceptionally strong month as well, with retail sales jumping 51.8 percent year-over-year to an all-time monthly high in October 2025, according to a separate ICRA analysis.
Electric two-wheeler sales totaled 144,365 units in October, reflecting a 4 percent increase from a year earlier. Their share of the overall market stayed consistent at 6 to 7 percent. (Source: IANS)
