India just had its best festive season ever, one car sold every 2 seconds

India logged its strongest festive season on record this year, with one car sold every two seconds and nearly three two-wheelers purchased every second during the 42-day Navratri-to-Diwali period, according to a research report by State Bank of India (SBI).

"The 42-day festive period turned out to be a bestseller season for the automotive sector with sales at record levels," the report said.

"The period from Navratri to Diwali saw the industry selling one car every 2 seconds and almost 3 two-wheelers every second even as dealers struggled to meet vehicle delivery deadlines," it added.

The analysis, based on a wide set of high-frequency indicators, suggests that festive demand combined with recent GST rationalisation unleashed a consumption surge across regions, pushing leading indicators of demand acceleration to 83% in the September quarter (Q2 FY26) from 70% in Q1.

Best-ever festive auto sales

The festive period delivered all-time-high vehicle sales, the report said. Citing industry data, it noted that nearly 7.7 lakh passenger vehicles and 40.5 lakh two-wheelers were sold between September and October 2025, averaging 18,261 PVs and 96,500 two-wheelers a day.

All regions reported double-digit growth of about 19% in car volumes. High-value models priced above ₹20 lakh saw more than 40% growth, reflecting rising premiumisation in urban and metro centres. Small cars recorded over 35% annual growth.

In volume terms, 78% of cars sold cost under ₹10 lakh, while in value terms, 39% of sales came from models priced above ₹10 lakh.

Most major states logged strong growth in both volume and value of car sales, with some segments rising more than 60%.

GST reforms fuel spending surge

SBI said the GST rationalisation implemented ahead of the festive period acted as a major catalyst. Lower effective rates, it noted, boosted compliance and left consumers with higher monthly savings, estimated at around 7% of average consumption expenditure.

The report projects that gross domestic GST collections for November 2025 may come in at ₹1.49 lakh crore, a 6.8% year-on-year rise. The total GST mop-up, including ₹51,000 crore of IGST and import cess, could cross ₹2 lakh crore.