India’s automobile industry closed calendar year 2025 with overall car sales rising 6% year-on-year to a record 4.5 million units. Growth was supported by tax rationalization, repo rate cuts, and income tax relief, which boosted disposable incomes and consumer sentiment.
Passenger Vehicles (PV)
- PV sales accelerated after the GST rate reduction September 2025.
- December sales reached 407,000 units, up 26% from 322,000 units in December 2024.
- SUVs remained the main growth driver, increasing their share to 55.8% of PV sales from 53.8% in 2024.
- Maruti Suzuki
- The dominant car maker saw its December sales surge 37% to 178,646 units.
- Full-year volumes hit a record 1.84 million units.
- Dealer inventory levels stood at about three days.
- Demand revival was noted even in the small car segment following tax cuts.
- Tata Motors
- Achieved its fifth consecutive year of record sales.
- Sold 587,218 units in 2025, including 81,125 electric vehicles (highest-ever EV volumes).
- Growth driven by SUV demand and adoption of cleaner powertrains.
- Mahindra & Mahindra
- Reported 18% growth, selling 476,476 vehicles.
- Achieved highest-ever SUV volumes.
- Toyota Kirloskar Motor
- Sales rose 17% to 351,580 units.
- Expanded dealer network and youth engagement supported growth.
- Kia India
- Sales increased 15% to 280,286 units.
- Škoda Auto
- Sales more than doubled to 72,665 units from 35,166 units in 2024.
- Royal Enfield (Motorcycles)
- December sales rose 37% to 93,177 units.
- Tata Motors (Commercial Vehicles)
- December volumes grew 24% year-on-year to 40,057 units.
- Growth supported by GST 2.0, festive demand, and a rebound in construction and mining activity.
- Ashok Leyland (Commercial Vehicles)
- December sales increased 26% to 19,855 units.
- Mahindra (Farm Equipment)
- Tractor sales in December rose 37% to 30,210 units.
- Growth supported by improved cash flows from harvests, favorable weather, and strong reservoir levels.
- TVS Motor Company (Two-Wheelers and Three-Wheelers)
- December sales rose 50% to 481,389 units from 321,687 units in December 2024.
- Two-wheeler sales grew 48% to 461,071 units, with domestic volumes up 54% to 330,362 units.
- Motorcycle sales surged 50% to 216,867 units; scooter sales rose 48% to 198,017 units.
- EV sales increased 77% to 35,605 units.
- Exports grew 40% to 146,022 units.
- Three-wheeler sales more than doubled to 20,318 units.
Sustained policy support, rising SUV demand, and the adoption of cleaner technologies positioned the sector for moderate but broad-based growth in 2026.
