October 2025 was a landmark month for India’s passenger vehicle (PV) market as GST 2.0 Boom SUV Demand. Backed by the new GST 2.0 tax regime and a strong festive season, automakers saw a sharp spike in SUV demand. Sales data shows that SUVs captured a dominant 57% share of PV volumes, with models like the Tata Nexon, Hyundai Creta, Mahindra Scorpio, Maruti Fronx, and Tata Punch leading the way.
Why SUVs Are Roaring Back
1. Near-Term Price Relief from GST Reforms
With the introduction of GST 2.0, carmakers passed on substantial tax-cut benefits to buyers.
-
Mahindra extended full GST cuts across its ICE SUV range—discounts per model ranged from ₹1.01 lakh to ₹1.56 lakh, including on the Scorpio and classic models.
-
Tata Motors slashed ex-showroom prices by up to ₹2 lakh on select models, including the Nexon and Punch, by combining GST reduction with festive-themed discounts.
2. Festive Spending Gives a Tailwind
The surge coincided with major festivals like Navratri, Dussehra, and Diwali—traditionally a strong buying period.
Combined with pent-up demand, this seasonal boost helped launch the SUV boom.
Breaking Down the Top SUV Winners
Here are the standout performers in the October 2025 SUV wave:
-
Tata Nexon: The best-selling SUV and overall top car, with 22,083 units wholesaled.
-
Hyundai Creta: Second place among SUVs, delivering 18,381 units.
-
Mahindra Scorpio: Including variants (Classic/N), clocked 17,880 units.
-
Maruti Fronx: Captured 17,003 units in wholesales.
-
Tata Punch: Logged 16,810 units, showing strong compact SUV demand.
These numbers reflect not only surge in consumer demand but also effective execution by manufacturers passing on GST benefits.
How Automakers Passed the Benefit
Automakers didn’t just rely on tax reform—they aggressively discounted to accelerate sales:
-
Mahindra clearly outlined how GST reductions translated to lower on-road prices across its SUV portfolio, making larger SUVs more accessible.
-
Tata Motors offered a mix of GST cuts and festive cashbacks. For example, Nexon buyers could save up to ₹2 lakh during this period.
-
These strategies paid off during the sectors’ most important buying window of the year.
What This Trend Means for India’s Auto Landscape
-
SUV leadership solidified: Nearly six in ten PV sales in October were SUVs, reinforcing how central this segment is to India’s auto growth story.
-
Broader inclusivity: Even sub-4-metre SUVs like Punch and Nexon benefitted from tax cuts, appealing to both first-time buyers and value-focused customers.
-
Dealer pressure points: Surging demand could strain inventory and delivery timelines—especially for high-demand models.
-
Momentum to watch: Whether this surge continues after the festive window will depend on automakers’ ability to sustain affordability.
Challenges and Risks Ahead
-
Sustainability of demand: Will the spike persist after Diwali? If prices rise or discounts retract, demand could cool.
-
Margin compression: Deep GST and cash discount pass-throughs may squeeze automaker profitability unless offset by volume.
-
Inventory bottlenecks: Dealers may struggle to keep up with orders, especially on fast-moving models.
-
Policy dependence: Future reforms could reset consumer sentiment quickly; automakers must be nimble.
10 best-selling SUVs in India in October 2025
Tata Nexon – 22,083 units
Hyundai Creta – 18,381 units
Mahindra Scorpio – 17,880 units
Maruti Suzuki Fronx – 17,003 units
Tata Punch – 16,810 units
Mahindra Bolero/Neo – 13,755 units
Kia Sonet – 12,745 units
Mahindra XUV 3XO – 12,237 units
Maruti Suzuki Brezza – 12,072 units
Hyundai Venue – 11,738 units
Conclusion
October 2025 will likely be remembered as a watershed moment for India’s SUV market. The powerful combination of GST 2.0 reforms and festive season momentum has not only brought down effective prices but also triggered a major shift in buyer behavior. The Nexon, Creta, Scorpio, Fronx, and Punch have emerged as clear winners, driving SUV dominance in the PV segment. For automakers, the opportunity is real—but translating this surge into long-term growth will require balancing tax benefits, margins, and customer experience.
