Jammu & Kashmir's Automobile Sector Sees Robust 12% Growth in September 2025

The automobile industry in Jammu & Kashmir (J&K) experienced a significant uptick in sales during September 2025, registering a 12% year-on-year growth. This performance notably outpaced the national average, reflecting a strong regional demand driven by favorable economic policies and festive consumer sentiment.

Factors Driving the Growth

A pivotal factor contributing to the surge in vehicle sales was the implementation of revised Goods and Services Tax (GST) rates on September 22, 2025. The reduction in GST rates made vehicles more affordable for consumers, thereby stimulating demand across various segments of the automobile market.

The onset of the Navratri festival period coincided with the GST revisions, leading to a surge in consumer spending. During this nine-day period, auto retail sales in India saw a 34% increase, with J&K mirroring this trend through heightened local demand.

Improved rural purchasing power, bolstered by a good monsoon season, played a crucial role in driving sales. The rural populace, benefiting from increased agricultural income, contributed significantly to the demand for two-wheelers and entry-level passenger vehicles.

 Two-Wheelers: The two-wheeler segment in J&K witnessed a notable growth of 12.71%, with 7,876 units sold in September 2025 compared to 6,981 units in the same month the previous year.
 Passenger Vehicles: Sales in the passenger vehicle category also saw a positive trend, aligning with the national growth patterns observed during the festive season.

The robust performance of J&K's automobile sector in September 2025 indicates a positive trajectory for the coming months. With the continuation of favorable GST rates, sustained festive demand, and ongoing rural economic recovery, the region's auto industry is poised for sustained growth. Industry experts anticipate that the momentum will carry into the Diwali season, traditionally a peak period for vehicle sales.

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