In a significant boost to the automobile sector, Jharkhand has registered a sharp spike in vehicle sales following a reduction in the Goods and Services Tax (GST) levied on them. Data from the Federation of Automobile Dealers’ Association (FADA) shows a remarkable upward trend, particularly in the festive month of October 2025.
The GST Catalyst and Sales Figures
The turning point came on September 22, when the GST on vehicles was reduced by approximately 10%. This policy change had an immediate and profound impact on consumer sentiment. According to figures shared by the Ministry of Road Transport with FADA, the sales numbers tell a compelling story.
In August 2025, the state sold 31,201 two-wheelers, 2,813 three-wheelers, 1,251 commercial vehicles, 4,470 private vehicles, and 2,089 tractors. Post-GST cut, September sales showed an early rise with 34,790 two-wheelers, 3,002 three-wheelers, 1,161 commercial vehicles, 5,127 private vehicles, and 1,290 tractors.
However, the real explosion in demand was witnessed in October 2025, a month packed with festivals. Sales skyrocketed to:
- 97,347 two-wheelers
- 3,842 three-wheelers
- 1,714 commercial vehicles
- 10,008 private vehicles
- 1,406 tractors
Unprecedented Year-on-Year Growth
The FADA report highlights that the GST reduction led to the trebling of two-wheeler sales and a doubling of private vehicle sales in October 2025 compared to August 2025. The growth becomes even more striking when compared to the same period the previous year.
In October 2025 versus October 2024, the state recorded the following percentage increases:
- Two-wheelers: 97.73%
- Three-wheelers: 53.07%
- Commercial Vehicles: 16.52%
- Private Vehicles: 14.82%
- Tractors: 30.31%
Industry and Government Response
Govind Mewar, Chairperson of FADA Jharkhand, attributed the surge to pent-up demand. “Ever since Prime Minister Narendra Modi announced the GST reform, people were awaiting the tax cuts and many even postponed their purchase,” he said. “The sales of two-wheelers and private vehicles recorded in October last year were unprecedented.”
The sales boom has had positive ripple effects across the economy. Mewar pointed out that the increase created new employment opportunities as dealerships recruited more salespersons and technicians. Furthermore, the state government’s revenue from vehicle registration fees saw a significant rise.
Echoing this sentiment, automobile dealer Arvind Lohia, who has showrooms across the state, confirmed the need for expansion. “I have increased my staff strength by around five per cent to meet the requirement after the rise in sales,” he stated.
The data conclusively demonstrates how a targeted fiscal policy like a GST cut can stimulate a key industry, drive consumer spending during festive seasons, and generate broader economic benefits including job creation and higher state revenues.
