Archive · 28 Oct 2025
India's Festival Season Sales Expected to Be the Best Ever, FADA Reports
Imagine you want to buy a car or a motorcycle.
This year, during the big holiday shopping season in India, buying a new, smaller car or bike is becoming cheaper!
The government lowered the sales tax, making them less expensive.
Also, it's easier to pay for them because the initial payment you need to make is smaller, and the monthly payments are lower.
Because of these good deals, lots of people are buying new vehicles, so much so that car sellers think this might be the busiest shopping season ever for vehicles.
Automobile dealers anticipate the current festival season may be the best ever for sales in India.
Reduced Goods and Services Tax (GST) rates on entry-level vehicles and two-wheelers are a key driver of increased sales.
Lower down payments and Equated Monthly Installments (EMIs) are making vehicles more accessible to consumers.
Demand for entry-level vehicles has returned to pre-Covid (2019) levels following GST rationalization.
Attractive financing schemes and the GST reduction have led to renewed enquiries, bookings, and record footfalls at dealerships.
- Who
- Federation of Automobile Dealers Association (FADA) and consumers
- What
- Anticipation of the best-ever festival season sales in India, driven by GST 2.0 and attractive financing
- When
- Festival season of 2025, with revised GST rates effective September 22, 2025
- Where
- Across India
- Why
- Reduced GST rates on entry-level vehicles, lower down payments and EMIs, attractive financing schemes, and renewed consumer demand.
Optimistic Outlook
Potential Concerns
Impact of GST 2.0
Optimistic Outlook
FADA believes the GST 2.0 implementation, specifically the rate reduction on entry-level vehicles, has significantly boosted sales and returned demand to pre-pandemic (2019) levels.
Potential Concerns
While GST reduction is cited as a positive factor, the articles do not provide specific opposing viewpoints on its impact, focusing more on its positive correlation with sales.
Consumer Purchasing Power
Optimistic Outlook
Reduced down payments, lower EMIs, and attractive financing schemes have made new vehicles more accessible, encouraging consumers to increase purchases and opt for new entry-level vehicles over used ones.
Potential Concerns
The articles do not present any directly opposing views on consumer purchasing power, but the reliance on financing schemes might imply underlying affordability challenges that are being overcome by incentives.
- Association
- Federation of Automobile Dealers Association (FADA)
- Key Legislation
- GST 2.0 (Revised GST rates effective September 22)
- Affected Vehicles
- Entry-level passenger vehicles, two-wheelers, motorcycles below 350 cc, cars up to 4 meters in length and 1200 cc engines
- GST Rate Change
- Reduced from 28% to 18% for eligible vehicles, cess removed
- Sales Trend
- Robust demand, potential for highest ever festival sales
- Previous Period Comparison
- Sales returning to 2019 (pre-Covid) levels
- Navratri Sales
- 34% year-on-year retail sales surge