India’s vehicle financing market recorded a revival through the festive season as the GST rate cut on automobiles, implemented on September 22, helped unlock pent-up demand. Banks and NBFCs reported a rise in fresh loan enquiries and disbursals after a brief pause earlier in the month, when customers delayed purchases in anticipation of the tax change.

FADA data indicates steady improvement in retail activity.

Vehicle retails in September 2025 rose 5.22% year-on-year, with two-wheelers up 6.5% and passenger vehicles up 5.8%. Demand strengthened further during Navratri, when overall retails increased 34% from a year earlier.

Wholesale figures from SIAM show a similar trend, with passenger vehicle dispatches up 4.4% year-on-year at 3,72,458 units and two-wheeler volumes higher by 6.7% at

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