October 2026 Car Registrations Rise 15% MoM; GST 2.0 Festive Base Distorts YoY Comparison

India’s passenger-vehicle market maintained its recent sequential momentum in October 2026. Vahan registrations across the mass and luxury segments rose from 4,37,875 units in September to 5,02,592 units in October—a 14.8% month-on-month rise.

The October total was nevertheless 14.6% lower than the 5,88,321 registrations recorded in October 2025. Taken in isolation, that decline suggests a substantial slowdown. The comparison becomes more nuanced once the timing of GST 2.0 and the 2025 festive season is considered.

GST 2.0 took effect on September 22, 2025. Buyers had deferred vehicle purchases ahead of the revised tax rates, concentrating pent-up demand into the closing days of September and October. Navratri and Diwali also fell within this elevated purchase window, making October 2025 an unusually strong comparison base.

The more representative September–October comparison shows that registrations increased 3.5% year on year, from 9,09,068 units in 2025 to 9,40,467 units in 2026.

October'26 Registrations Rise 14.8% Over September'26

Mass-market registrations rose from 4,31,918 units in September 2026 to 4,97,479 units in October, a 15.2% sequential increase.

Luxury registrations moved in the opposite direction, declining from 5,957 to 5,113 units, or 14% month-on-month. However, the mass market’s considerably larger volumes lifted the combined passenger-vehicle total by 64,717 registrations.

Maruti Suzuki and Tata Drive the October Increase

Maruti Suzuki recorded the largest absolute increase, adding 38,579 registrations over September. Its volume rose from 1,72,871 to 2,11,450 units, an increase of 22.3%.

Tata registered the strongest percentage growth among the major manufacturers. Its registrations increased 24% from 58,732 to 73,002 units, adding 14,270 vehicles.

Together, Maruti Suzuki and Tata accounted for more than four-fifths of the mass market’s net monthly increase.

Hyundai grew 13% to 57,883 units, Kia advanced 10% to 30,657 units, and Mahindra increased 8% to 64,248 units. Kia beats Toyota comprehensively for the first time this year

Toyota, Honda, VinFast and Jeep were among the manufacturers that did not participate in the broader sequential increase. Renault remained almost flat.

Why the October'26 YoY Comparison Looks Weak

Combined registrations declined from 5,88,321 units in October 2025 to 5,02,592 units in October 2026, a reduction of 85,729 vehicles or 14.6%.

Mass-market registrations fell 14.7%, while the luxury market declined by a much smaller 3%. Most large manufacturers recorded lower October volumes year on year. Maruti Suzuki declined 15.2%, Tata fell 8.6%, Mahindra was down 12.7%, Hyundai declined 16.6%, and Kia fell 13.3%.

Toyota’s registrations contracted 25.3%, while Honda, Renault and the Skoda–Volkswagen group each declined by more than 30%. JSW MG and Nissan were among the few established mass-market manufacturers to register YoY growth. VinFast also reported a substantial volume increase, although its October 2025 base was only 137 vehicles.

Mass Market OEMs YoY Change

Luxury Market OEMs YoY Change

The comparison requires the context of September 2025. The revised GST rates became effective on September 22, and the first 21 days of that month were affected by customers waiting for the tax changes. FADA subsequently reported a sharp increase in registrations after implementation, describing the festive period as benefiting from pent-up demand. SIAM also attributed the record October 2025 passenger-vehicle performance to festive demand and the GST rate reduction. PIB GST announcement, FADA September 2025 retail report, SIAM October 2025 sales statement

October 2025 therefore absorbed demand that would normally have been distributed more evenly between September and October.

September–October Registrations Grew 3.5% as Leading Manufacturers Expanded

Combining September and October produces a more balanced comparison of the GST 2.0 and festive purchase periods.

Total passenger-vehicle registrations increased from 9,09,068 units during September–October 2025 to 9,40,467 units in the corresponding 2026 period. That represents growth of 31,399 vehicles, or 3.5%.

Mass-market registrations increased 3.3%, from 8,99,426 to 9,29,397 units. Luxury registrations grew considerably faster, rising 15% from 9,642 to 11,070 units.

The cumulative manufacturer data also tells a different story from October’s standalone decline.

Mahindra grew 7.8%, adding 9,019 registrations. Tata increased 6%, adding 7,449 units, while Maruti Suzuki added 5,001 registrations despite growing by a modest 1.3%. Kia advanced 9%, adding 4,806 units.

These four manufacturers contributed almost 88% of the mass market’s net two-month increase.

Nissan recorded the fastest percentage growth among established mass-market brands, albeit from a relatively small base. JSW MG and Citroën also posted double-digit growth.

Toyota, Skoda–Volkswagen, Honda, Renault and Jeep ended the two months below their 2025 volumes. The cumulative comparison therefore does not erase manufacturer-specific weakness, but it shows that overall demand remained higher than a year earlier.

Registration figures are based on Vahan data. Percentages may differ marginally because of rounding.

Disclaimer: The values represented are new vehicle registrations and not dealer dispatches, sourced via RTOs through Vahan. The data is exclusive to ElecTree and Ferrarirules. Republishing the data on any social media platform or forum without credit is prohibited and will amount to copyright infringement and may result in appropriate legal action.