The city witnessed a sharp rise in vehicle registrations in October 2025, with an average of 2,774 new vehicles hitting the roads every day, driven by festive demand and a recent reduction in GST rates on two-wheelers and small cars.

Festive season and GST cuts drive record registrations

According to data from the transport department, Bengaluru recorded a total of 86,014 vehicle registrations in October, marking a 51% increase compared to 56,831 registrations in September. On average, 1,900 two-wheelers and 514 cars were added daily during the month, up from 1,299 two-wheelers and 333 cars per day in September.

Officials attributed the surge to two key factors — the GST rate reduction on smaller vehicles and the festive season purchases during Dasara and Deepavali. The GST on two-wheelers up to 350cc and small cars (under four metres in length) was reduced from 28% to 18%, encouraging buyers to advance or finalise purchases.

“The revised tax rates came into effect on September 22, prompting many customers to wait until then to benefit from lower taxes,” said a senior RTO official.

Transport department’s revenue up by ₹230 crore

The rise in registrations has also boosted the transport department’s revenue. Transport Commissioner Yogeesh A.M. said revenue in October 2025 stood at ₹1,387 crore, compared to ₹1,157 crore during the same period last year — an increase of ₹230 crore.

“Registrations of cars priced below ₹10 lakh increased by around 4,000 compared to October 2024. The response to the GST reduction has been very positive,” he added.

The department has set an ambitious revenue target of ₹15,000 crore for 2025–26, making it one of the state’s top revenue-generating agencies.

Growing congestion despite economic boost

While the surge in vehicle registrations signals a healthy economy and consumer confidence, it also deepens Bengaluru’s traffic woes. The city now has 1.2 crore registered vehicles, including 83.8 lakh two-wheelers and 24 lakh cars.

Transport experts have expressed concern that the growth in private vehicle ownership far outpaces the expansion of public transport infrastructure. “We are growing rapidly, but without proportional investment in mass transit, congestion and pollution will worsen,” said an urban mobility researcher.

Conclusion

The GST cuts and festive enthusiasm have undeniably boosted Bengaluru’s vehicle sales and government revenue. However, with over a crore vehicles already crowding the city’s roads, experts stress the need for faster public transport development and stricter parking and congestion policies to maintain urban mobility.