[color=hsl(0,0%,0%)]September 2025 turned out to be a game-changing month for India’s passenger vehicle market. After a quiet start many buyers waiting on the sidelines for clarity on new GST rates, the final days of the month surged in activity. The combination of GST 2.0 implementation and festive demand (Navratri) fueled this rebound. While overall industry volumes grew, the real spotlight was on Tata Motors, which recorded its highest-ever monthly sales and placed two cars in the country’s top 5 list.
[color=hsl(0,0%,0%)]Passenger Vehicle Market: A Festive Boost
[color=hsl(0,0%,0%)]The passenger vehicle (PV) retail sales in September 2025 grew 5.8 per cent year-on-year, touching 2.99 lakh units compared to 2.83 lakh in September 2024. The growth came despite muted activity in the first three weeks, as many customers delayed purchases waiting for GST 2.0 reforms. Once the tax cuts were announced and Navratri festivities began, showrooms witnessed a surge in footfalls and deliveries.
[color=hsl(0,0%,0%)]Tata Motors Hits Record High
[color=hsl(0,0%,0%)]For Tata Motors, September was nothing short of historic. The company sold 60,907 passenger vehicles (domestic + exports), marking a massive 47 per cent growth YoY.
[color=hsl(0,0%,0%)]This pushed Tata back into the No.2 position in India’s passenger vehicle market, overtaking Mahindra and Hyundai.
[color=hsl(0,0%,0%)]Brand[color=hsl(0,0%,0%)]Sep 2025 Sales[color=hsl(0,0%,0%)]Sep 2024 Sales[color=hsl(0,0%,0%)]Growth (YoY)[color=hsl(0,0%,0%)]Maruti[color=hsl(0,0%,0%)]1,32,820[color=hsl(0,0%,0%)]1,44,962[color=hsl(0,0%,0%)]-8%[color=hsl(0,0%,0%)]Tata[color=hsl(0,0%,0%)]60,907[color=hsl(0,0%,0%)]41,313[color=hsl(0,0%,0%)]+47%[color=hsl(0,0%,0%)]Mahindra[color=hsl(0,0%,0%)]56,233[color=hsl(0,0%,0%)]51,062[color=hsl(0,0%,0%)]+10%[color=hsl(0,0%,0%)]Hyundai[color=hsl(0,0%,0%)]51,547[color=hsl(0,0%,0%)]51,101[color=hsl(0,0%,0%)]+1%[color=hsl(0,0%,0%)]Tata leapfrogged Hyundai and Mahindra to reclaim the No.2 position in the Indian Passenger Vehicle (PV) market. Its growth rate is among the strongest, especially compared to Maruti, which saw a decline.
[color=hsl(0,0%,0%)]Tata’s domestic PV sales stood at 59,667 units, while EV and CNG models drove record growth. EV volumes nearly doubled to 9,191 units, while CNG volumes jumped by over 105 per cent to cross 17,800 units. Together, EV + CNG contributed an impressive 40-45 per cent of Tata’s overall PV sales.
[color=hsl(0,0%,0%)]In Q2 FY26 (July–September), Tata’s PV sales in total reached 144,397 units, up ~10 per cent over the same quarter last year, with EV sales ~24,855 units (~17 per cent share).
[color=hsl(0,0%,0%)]These numbers show that Tata’s strategy is not just about hitting numbers but reshaping its product mix toward greener offerings.
[color=hsl(0,0%,0%)]Nexon Leads, Punch Joins The Top 5 List
[color=hsl(0,0%,0%)]The big story of the month was the Tata Nexon, which not only became Tata’s highest-selling model but also the no.1 sold car in India across all brands. Tata sold over 22,573 units of Nexon, making it the top-selling SUV as well.
[color=hsl(0,0%,0%)]Alongside, the Tata Punch secured its place at no.5 in the overall top-selling cars list, with nearly 15,891 units sold.
[color=hsl(0,0%,0%)]Top 5 Cars Sold In September 2025
[color=hsl(0,0%,0%)]Rank[color=hsl(0,0%,0%)]Model[color=hsl(0,0%,0%)]Units Sold[color=hsl(0,0%,0%)]1[color=hsl(0,0%,0%)]Tata Nexon[color=hsl(0,0%,0%)]22,573[color=hsl(0,0%,0%)]2[color=hsl(0,0%,0%)]Maruti Dzire[color=hsl(0,0%,0%)]20,038[color=hsl(0,0%,0%)]3[color=hsl(0,0%,0%)]Hyundai Creta[color=hsl(0,0%,0%)]18,861[color=hsl(0,0%,0%)]4[color=hsl(0,0%,0%)]Mahindra Scorpio[color=hsl(0,0%,0%)]18,372[color=hsl(0,0%,0%)]5[color=hsl(0,0%,0%)]Tata Punch[color=hsl(0,0%,0%)]15,891[color=hsl(0,0%,0%)]Hyundai, in its report, confirmed that Hyundai Creta had its best-ever monthly sales at 18,861 units in September.
[color=hsl(0,0%,0%)]Why Tata’s Approach is Gaining Traction
[color=hsl(0,0%,0%)]Nexon is in an optimal position post-GST cut: Affordable yet feature-rich, appealing to buyers who might have chosen models either just below or just above. Punch is pulling in customers from the small hatchback space by offering SUV styling and value at near-hatchback costs.
[color=hsl(0,0%,0%)]Multi-powertrain strategy pays off: Tata’s offering of petrol, CNG, hybrid/EV variants gives buyers freedom to pick what suits them best. For CNG buyers, Tata’s twin-cylinder technology and 'solutions-driven' approach are resonating. The strong uptake in CNG and EV in September is proof of the success of this strategy.
[color=hsl(0,0%,0%)]Green Portfolio Is No Longer Niche
[color=hsl(0,0%,0%)]The fact that 40–45 per cent of Tata’s PV sales in September came from EV + CNG shows that green mobility is becoming mainstream not just a niche play. Rising acceptance of EVs, combined with practical CNG options, positions Tata well for longer-term growth.
[color=hsl(0,0%,0%)]Many buyers delayed decisions until the new GST regime. Tata’s ability to convert that pent-up demand, through readiness, stock, and robust order pipeline, helped it capitalise on that late surge. Moreover, with two models in the top 5, Tata’s brand, dealer network, and marketing played a key role.
[color=hsl(0,0%,0%)]Looking Ahead
[color=hsl(0,0%,0%)]September 2025 has set a positive tone for India’s passenger vehicle industry. The combination of GST 2.0 rate cuts and festive demand demonstrated how policy changes can quickly influence buying behavior. With PV sales showing 5.8 per cent YoY growth and strong pickup during Navratri, the industry appears well-positioned for the upcoming festive season in October to December.
[color=hsl(0,0%,0%)]Green mobility is gaining traction, with EVs and CNG models steadily increasing their market share. SUVs continue to drive overall growth, reflecting changing customer preferences for space, versatility, and value. If supply chains remain stable and OEMs maintain attractive pricing and finance options, the coming months could see record-breaking PV sales, sustaining momentum well into the new year. |
