India's automobile retail sector has entered a ‘golden festive phase,’ according to data released by the Federation of Automobile Dealers Associations (FADA), which detailed vehicle registrations for September and the Navratri festival period in 2025.

The data reveals overall September retail sales came at 1.82 million vehicles, up 5.22 percent YoY, but the highlight was the unprecedented 34 percent surge in vehicle retail sales during the Navratri festival, which FADA dubbed a ‘Bachat Utsav’ (Savings Festival). Interestingly, compared to August 2025, the retail sales dropped by 6.98 percent.

On the other hand, the Navratri period delivered a historic high for the sector, with overall retail sales soaring by 34 percent YoY. Every major segment registered strong double-digit growth, except for Construction Equipment (CE), which declined due to heavy rains slowing activities.

• Two-wheelers led the charge with a 36 percent increase, driven by improved affordability and festive offers.
• Passenger vehicles saw a robust 34.8 percent rise, as new buyers and upgraders took advantage of lower prices.
• Commercial Vehicles (CV) grew by 14.8 percent, reflecting optimism in infrastructure and easier financing.

The remarkable festive growth is being attributed to the 'GST 2.0' tax reforms, which lowered Goods and Services Tax rates on vehicles, effectively boosting affordability for consumers.

September 2025 proved to be an unusual month, with sales remaining muted for the first three weeks. However, demand dramatically revived after 22nd September, coinciding with the implementation of the new GST rates and the start of Navratri.

Sai Giridhar, Vice-President, FADA, said, "September 2025 was an exceptionally unique month for India’s automobile retail industry. The first three weeks were largely muted, with customers holding back in anticipation of the GST 2.0 reforms. However, the dynamics changed dramatically in the final week as Navratri festivities coincided with the implementation of lower GST rates, reviving customer sentiment and accelerating deliveries across most vehicle categories."

Passenger Vehicle (PV) dealers also used the final surge to replenish stock, pushing inventory levels up to approximately 60 days in preparation for the upcoming peak sales season of Dhanteras and Deepawali.

Giridhar hailed the performance, said, "Navratri 2025 will go down as one of the most memorable chapters in India’s automobile retail journey — a true ‘Bachat Utsav’ unleashed by the visionary GST 2.0 reform. For the first time ever, dealerships across the nation witnessed record-breaking footfalls and deliveries."

Robust Outlook

FADA is highly optimistic about the near-term outlook, predicting that India is on track for its best-ever festive season. The combination of favourable factors – including an above-normal monsoon, a strong harvest, stable policy rates and the transformational impact of GST 2.0 – is set to boost consumer purchasing power across rural and urban markets.

The momentum is expected to carry through October, with Dhanteras and Deepawali forecast to deliver all-time high sales figures, ushering the Indian auto retail sector into a new phase of growth.

Lead image: For representational purposes only.

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Kia India, one of the leading passenger vehicle manufacturers, has announced the addition of the HTE(EX) trim to its Carens Clavis (ICE) range at prices starting INR 1.25 million for the G1.5 petrol, INR 1.34 million for the G1.5 turbo-petrol and INR 1.45 million for the D1.5 diesel model (all ex-showroom). This introduction aims to provide features across various powertrains while maintaining affordability.

The variant is available exclusively in a 7-seater configuration across all internal combustion engine options. Notably, the HTE(EX) trim introduces a sunroof to the G1.5 petrol powertrain of the Carens Clavis for the first time.

Positioned above the HTE(O) trim, the HTE(EX) includes several comfort and convenience updates. These features comprise a skylight electric sunroof, fully automatic temperature control (FATC) and LED daytime running lights (DRLs) with position lamps. Interior updates include LED cabin lamps and an auto up/down function for the driver-side power window. These additions are intended to increase the accessibility of such features to a broader customer base.

Atul Sood, Senior Vice-President – Marketing & Sales, Kia India, said, “The introduction of the HTE (EX) trim for Carens Clavis (ICE) range is a direct outcome of listening closely to our customers and understanding what they value most. By incorporating comfort and convenience features that they have actively want, including the first-ever skylight sunroof in the G1.5 powertrain of Carens Clavis – and offering them across all powertrains, we are making our Carens Clavis lineup an even more compelling choice for families. This move underlines our strong customer-centric approach and our commitment to strengthening Kia’s presence in the highly competitive Indian automotive market.”

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French automaker Renault has unveiled the Filante, a premium crossover designed to lead the brand's 2027 International Game Plan. Developed on the CMA platform, the vehicle marks Renault's return to the premium E-segment. The model will launch in South Korea in March 2026, followed by releases in South America and the Gulf states by early 2027.

The Filante name draws on Renault's history, referencing the Étoile Filante speed record prototype of 1956 and the 2025 electric concept car. The vehicle is manufactured at the Busan plant in South Korea, a facility central to Renault’s strategy for the Asian and Middle Eastern markets.

The exterior features an avant-garde style with a specific light signature and an aerodynamic stern. Inside, the cabin includes lounge seating, customisable lighting, and a sound system designed for audiophiles. The digital environment is supported by the My Renault app, which allows for remote vehicle control and transparent software updates.

The Filante introduces a suite of driving aids to the Renault range, including Emergency Steering Assist, a Smart Rearview Mirror and Child Presence Detection. These systems are integrated into a connected cockpit designed to provide a personalised experience for the driver and passengers.

The vehicle debuts an upgraded full hybrid E-Tech 250 ps powertrain. This system utilises a dual electric drive and a Multimode Auto gearbox to balance power with efficiency. The architecture, developed through the Renault-Nissan-Mitsubishi Alliance, is optimised for hybrid performance to meet the targets of the 2027 International Game Plan, which aims for one in every three Renault sales outside Europe to be electrified.

Nicolas Paris, CEO, Renault Korea, said, “Renault Filante represents the best of what Renault group and Renault Korea can achieve together. Combining Renault's global DNA in design and innovation with the technical excellence of Renault Korea, it is backed by the advanced capabilities of the Korean automotive industry.”

Fabrice Cambolive, Chief Growth Officer Renault Groupe, and CEO Renault Brand, added, "We are opening a new chapter in the Renault International Game Plan 2027, here in Korea which plays a central role in our global ambitions. After the launch of Grand Koleos in October 2024, we are now about to unveil another flagship for Korea: Filante, the fifth new-generation vehicle of our international plan, designed for markets beyond Europe. Today is an important milestone, because it proves one thing very clearly: we are sticking to our roadmap and delivering on our promises. Filante perfectly illustrates our approach, combining Renault's French DNA - emotional design, humanised technology and best in class electrified technology - with Korean excellence to meet local customer expectations."

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Kia India, one of the leading passenger vehicle manufacturers, has signed a Memorandum of Understanding (MoU) with Avis Leasing to expand its Kia Lease Program.

The agreement represents Kia’s third partnership in the sector, following previous arrangements with Orix India and Ayvens India. The collaboration is intended to increase brand accessibility by offering mobility options that bypass traditional vehicle ownership.

The Kia Lease program targets customers with long-term requirements by providing tenures between 36 and 60 months with various mileage limits. The service allows users to access vehicles without an initial down payment. The monthly lease fee covers maintenance, insurance renewals and resale management, intended to provide a simplified experience for the user.

Under the terms of the agreement, customers have the option to return the vehicle or upgrade to a different Kia model at the conclusion of the contract. The initiative, which launched in 2024, aligns with shifting consumer preferences towards usage-based models rather than asset ownership. By integrating with established leasing firms, Kia aims to create a scalable platform that generates demand outside of standard retail sales.

Atul Sood, Senior Vice President - Sales & Marketing, Kia India, said, “At Kia India, we recognise the Leasing and Subscription space emerging as an important growth driver in the Indian auto industry. Our partnership with Avis Leasing reflects our efforts towards strengthening Kia Lease as a scalable platform that addresses evolving customer needs while creating incremental demand beyond traditional ownership. Through such collaborations, we aim to build a strong, sustainable mobility business aligned with our long-term growth strategy in India.”

Aman Naagar, Managing Director, Avis India, said, “We are pleased to partner with Kia India on a collaboration that reflects a shared commitment to redefining corporate mobility in India. By combining Kia’s future-ready product portfolio with AVIS India’s pan-India leasing and fleet management platform, we enable organisations to access scalable, flexible, and efficient mobility solutions aligned with their long-term business objectives. This partnership brings together two organisations with complementary strengths: Kia’s strong product innovation and AVIS India’s nationwide leasing and fleet management capabilities to build a modern mobility ecosystem that supports the evolving needs of corporate customers across India.”

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Czech automaker Skoda Auto has announced that its upcoming all-electric seven-seater flagship model will be named the Peaq.

The vehicle represents the series production version of the Vision 7S concept first introduced in 2022. The name is intended to signify the model’s position at the summit of the Czech manufacturer's vehicle portfolio.

The Peaq incorporates the brand’s Modern Solid design language, which focuses on sustainability and functional aesthetics. Engineered for families and travel, the interior features seven seats and focuses on space and practicality. The model integrates the company's ‘Simply Clever’ solutions and marks an expansion of the Skoda electric vehicle range.

The development of the Peaq follows the brand's shift toward a refined product identity. By bringing the Vision 7S concept into production, Skoda aims to provide a vehicle that balances work and leisure requirements. The flagship is designed to meet user-friendliness standards while utilising the company's latest electric platform technology.

Martin Jahn, Skoda Auto Board Member for Sales and Marketing, said, “With the Vision 7S, we entered new territory for Skoda, with a clear idea of how to elevate the brand. Since then, we have introduced a new design language and further refined our product identity. Now we are bringing this innovative vehicle concept to life. Our new flagship model takes our brand values of spaciousness and practicality to a whole new level. As of today, our bold vision for Skoda’s electric future has a name: Peaq - a clear statement of where this model belongs in our portfolio.”

The world premiere of the Skoda Peaq is scheduled for summer 2026. This launch will follow four years of development since the initial debut of the design direction.

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