Just three states accounted for 30% of all auto sales in India in July-September 2025, underscoring the demand trends in these geographies even before GST 2.0 reduced prices of scooters to SUVs.
A total of 10.39 lakh cars and 55.62 lakh two-wheelers were sold in the second quarter of the ongoing fiscal, according to data released by the Society of Indian Automobile Manufacturers on Tuesday (18 November 2025).
Among the states, Maharashtra clocked the highest car sales with 1.32 lakh units, or 12.7% of all cars sold during the quarter. Uttar Pradesh accounted for the most number of two-wheelers sold—6.93 lakh units equivalent to 12.5% of total sales, according to SIAM data.
What was notable, however, was vehicular demand in Gujarat—the state ranked consistently among the Top 3 markets, irrespective of the number of wheels. The state accounted for 8.5% of all cars, 8.0% of all two-wheelers, 9.8% of all three-wheelers, and 9.4% of all commercial vehicles sold during Q2 FY26.
Auto sales in Q2 FY26
To be sure, car sales in India actually fell in Q2 FY26 as customers delayed purchases until the implementation of GST rate cuts on 22 September. The government’s move to rationalise the indirect tax into two slabs from four has reduced GST on small cars to 18% and GST on SUVs to 40%.
Dispatches to dealerships fell 1.5% year-on-year to 10.40 lakh units in Q2 FY26, even as two-wheeler sales increased 7.4% to 55.6 lakh units.
“Inspite of the new GST rates coming into effect from Sept. 22, i.e. only for nine days of the month, cars, two-wheelers and three-wheelers already posted their highest ever sales of September,” SIAM President Shailesh Chandra had said on 15 October.
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