GST rate cut helps automobile sales in J&K zoom past 25% growth in Oct
Srinagar, Nov 12: Buoyed by the price cut factored in by almost all the automobile dealers in the wake of slashing of Goods and Service Tax (GST) rates , which became effective pan-India from September 22, Jammu & Kashmir has recorded a sharp 25.35 per cent growth in overall retail vehicle sales during October this year.
As per data issued by the Federation of Automobile Dealers Association (FADA), the umbrella body for vehicle retail dealers across the country, the total vehicle sales of 27,466 in J&K during Octoberm 2025 is a 25.35 per cent year-on-year growth as compared to 21,912 vehicles sold in the UT during October, 2024.
The highest jump in sales has been recorded in the passenger vehicle category, which registered a whopping 31.90 per cent increase in sales during October this year, selling 8836 vehicles as compared to 6479 vehicles sold in J&K during October 2024.
Commenting on this sales trend, Irfan Ahmad Narwaroo, Managing Director, Jamkash Vehicleades (Kashmir) Pvt. Ltd. told Greater Kashmir that the robust sales in October has helped auto sector in J&K to overcome the sluggish market activity witnessed since May in the aftermath of the Pahalgam attack and the subsequent fragile situation that prevailed in the region.
“The GST rate cut along with the schemes offered by the car dealerships has helped the growth in sales. This has done a balancing act after we saw sales falling sharply in May and June,” said Narwaroo.
He said the over 40 day sales period during Navratri and Diwali, which witnesses sales almost doubling in the rest of the country, usually has no impact on auto sales in the Kashmir Valley. “This time around the new GST rates became effective at the same time when the peak festive season was on in rest of the country. With the launch of new models across brands, the auto sector in Jammu and Kashmir is hopeful to garner a further improvement in monthly sales,” he said.
In terms of the category-wise sales, the two-wheeler segment in J&K saw sales growth of 22.02 per cent in October 2025 as compared to the same month last year. A total of 15,775 two-wheelers were sold in the UT in October this year compared to 12, 928 two-wheelers sold in the same month last year.
As far as the three-wheeler segment in J&K is concerned, it saw sales growth of 5.36 per cent in October 2025 as compared to the same month last year. A total of 1495 three-wheelers were sold in the UT in October this year compared to 1419 three-wheelers sold in the same month last year.
There has been a sharp increase in the sales of commercial vehicles as well. This segment in J&K saw sales growth of 31.09 per cent in October 2025 as compared to the same month last year. A total of 951 commercial vehicles were sold in the UT in October this year compared to 721 CVs sold in the same month last year.
However, the construction equipment category has seen a drop in sales at -18.18 per cent. J&K saw sales of 27 construction equipment vehicles in October this year compared to 33 units sold during the same month last year. The tractor segment has witnessed a considerable improvement in sales during October with sales of as many as 380 tractors sold during the month in J&K, compared to 332 tractors that were sold in the UT during October last year. This translates into 14.46 per cent growth.
