The Indian two-wheeler market has witnessed a resounding comeback in October 2025, as a combination of the new GST 2.0 rollout and festive demand propelled registrations to record highs. According to Vahan data, two-wheeler registrations soared to 1.85 million units during the month — marking the highest monthly tally of the ongoing calendar year.
This robust performance underscores the dual impact of reduced GST rates and the revival of consumer sentiment amid the festive season. The market, which had remained sluggish through the monsoon months, saw a sharp rebound as buyers flocked to showrooms across both urban and rural regions.
Sales Surge After GST 2.0 Implementation
The implementation of GST 2.0 — which rationalized tax slabs and simplified compliance procedures — is being credited for rejuvenating demand in the automobile sector. Dealers reported a notable increase in enquiries and bookings following the announcement of the GST rate cuts in early October.
Vahan’s registration data highlights a 43% jump in October’s sales compared to the previous month. Registrations climbed from 1.29 million units in September to 1.85 million units in October, reflecting a surge in consumer confidence and pent-up demand.
Festive Season Boost
Industry experts attribute this surge largely to the ongoing festive period, traditionally a high-demand season for the automobile industry. “With Diwali around the corner and GST 2.0 reducing the effective price burden, customers are returning to the market with renewed enthusiasm,” said an auto sector analyst.
Retail sales in both urban centers and tier-2 cities have been particularly strong, with dealerships offering special festive schemes, extended warranties, and easy financing options to attract buyers.
Racing Ahead: A Record-Breaking Month
Historically, the strongest monthly two-wheeler sales were recorded in November 2024, when registrations touched 2.6 million units, driven by festive purchases and year-end discounts. However, October 2025’s performance has already set a new benchmark for post-pandemic recovery.
| Month & Year | 2W Registrations (mn) |
| Nov ‘24 | 2.6 |
| Nov ‘23 | 2.25 |
| Oct ‘25 | 1.85 |
| Nov ‘21 | 1.6 |
Industry Outlook
With consumer demand recovering and the government signaling continued fiscal support for the automobile sector, the outlook for the upcoming months remains optimistic. Dealers expect November 2025 to potentially surpass even October’s numbers, especially with upcoming offers for Diwali and Christmas.
Market observers believe the positive trend could sustain into early 2026, provided economic conditions remain stable and fuel prices stay within affordable limits.
“The momentum is likely to continue,” said a senior executive at a leading motorcycle manufacturer. “GST rationalization has played a key role, and rural demand, backed by a good monsoon and improving incomes, is strengthening the overall growth story.”
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