Diwali 2025: Automakers, retailers log strongest festive growth in over 10 years after GST cuts

Indian automakers, electronics makers and retailers reported their strongest festive-season sales growth in more than a decade, buoyed by recent tax cuts and improved consumer sentiment, as millions of shoppers rushed to buy cars, smartphones and appliances during Navratri and Diwali.

Companies across sectors said sales between September 22 and October 18 jumped as much as 50% from last year, led by demand in the mass-market segments following the rollout of sweeping Goods and Services Tax (GST) reductions and lower income-tax rates.

Automakers saw the fastest pace of festive-season growth since at least 201.

Maruti Suzuki India Ltd, the country’s largest carmaker, delivered about 325,000 vehicles between September 22 and Dhanteras, up 50% from a year earlier. The company received 450,000 bookings during the period, with about 94,000 for small cars.

“This festive season is going to beat all records,” said Partho Banerjee, senior executive officer for marketing and sales at Maruti Suzuki.

Hyundai Motor India delivered around 14,000 units on Dhanteras alone, 20% more than last year. “The positive momentum is driven by the festive spirit, a buoyant market environment and the encouraging impact of GST 2.0 reforms,” said Tarun Garg, the company’s managing director and CEO designate.

Tata Motors Ltd also saw robust sales, estimating more than 25,000 vehicles delivered during the Dhanteras-Diwali period, up 30% from a year earlier.

“After the tax cuts, vehicles have become more affordable,” said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles. “Several cars have come within the budget of customers who were earlier not thinking of buying a vehicle.”

Electronics and appliance sales grew 45–50% in value terms at brands such as Godrej Appliances, Haier and LG, executives said.

“The best part is the entry segment, which was affected for the last five years, has revived,” said Kamal Nandi, head of appliances at Godrej. “Single-door refrigerators and semi-automatic washing machines grew by 30–40%.”

Haier India President Satish NS said festive demand wiped off nearly all of the year’s sales backlog after weak demand before the GST cuts. Panasonic Life Solutions reported a 30% rise in TV and air conditioner sales, with large-screen TVs driving growth.

Market tracker Counterpoint Research said festive sales are likely to rise 16–18% by value and nearly 10% by volume, reported The Economic Times. “Consumer finance has taken a big leap this year,” said Tarun Pathak, director at Counterpoint.

Lifestyle International reported a 15–20% rise in sales, led by western wear and accessories.

At Titan’s Tanishq, senior vice president Arun Narayan said there was “a healthy mix of investment-driven purchases and demand for lightweight jewellery and gold coins.”