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India's Auto Boom: Record 4.55 Million PVs Sold in 2025, December Surges 26%

Domestic passenger vehicle wholesales in India jumped 26% year-on-year in December 2024, capping off a record year with 4.55 million units sold in 2025. This robust year-end surge was driven by a combination of GST rationalization in September and aggressive year-end discounts from automakers. While full-year growth was a solid 5.7%, demand was notably muted in the first half before being "pepped up" post-GST, with SUVs now commanding over 55% of the market. The positive momentum is forecast to continue into 2026, supported by steady demand and new model launches.

Key Points: India's 2025 Car Sales Hit Record 4.55M, December Up 26%

  • Record 4.55M PVs sold in 2025
  • December wholesales surge 26%
  • SUV penetration hits 55.8%
  • GST cut & discounts drive H2 boom
2 min read

Domestic passenger vehicle wholesales jump 26 pc in Dec, 4.55 million units sold in 2025

India's passenger vehicle sales soared to a record 4.55 million units in 2025, with December surging 26% due to GST cuts and year-end discounts. SUVs now dominate.

"We need to split 2025 into two halves, a pre-GST and the post GST. It is a combination of these things which has really pepped up the market. - Senior Industry Leader"

Mumbai, Jan 2

Domestic passenger vehicle wholesales rose around 26 per cent year‑on‑year to almost 4,05,000 units in December, driven by sustained demand after the goods and services tax rationalisation in September and year-end discounts offered by companies.

Buyers also advanced purchases ahead of automakers' January price hikes which led to the robust surge. For calendar year 2025, wholesales climbed 5.7 per cent year‑on‑year to a record high of roughly 4.55 million units, industry estimates showed, with December dispatches from manufacturers to dealers up around 26.2 per cent to 407,497 units from 322,965 units a year earlier.

Growth for the full year fell behind the December surge as demand stayed muted in the first half, which was boosted by the GST rate cut, said senior industry leaders.

Most carmakers posted healthy growth, with companies posting their best‑ever December sales up even 37 per cent. SUV penetration rose to 55.8 per cent of total PVs from 53.8 per cent in 2024, while small cars showed signs of recovery post GST rate cut.

"We need to split 2025 into two halves, a pre-GST and the post GST. it is a combination of these things which has really pepped up the market from the month of October onwards," a senior industry leader said.

The ratings agency ICRA, in a recent report, forecasted FY26 wholesale volume growth of 1-4 per cent, supported by steady demand, GST cuts, new model launches and sustained momentum.

The report said that during November three-wheeler sales in India grew 21.3 per cent to 71,999 units, two-wheeler sales jumped 21.2 per cent to 19,44,475 units.

It further stated that continued supportive policy reforms and improved market sentiments would drive this growth trajectory well into 2026.

Meanwhile, scooter sales grew a robust 29.4 per cent to 7,35,753 units, reflecting strong urban demand. Motorcycle sales increased 17.5 per cent to 11,63,751 units, supported by steady rural and semi-urban buying.

- IANS

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Reader Comments

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Priya S
Bought my first SUV in December because of the year-end discounts! The dealer was practically begging to close the sale before the January price hike. Glad to see I was part of this record surge. 😄
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Vikram M
While the numbers look good, I'm a bit concerned. This seems driven by discounts and fear of price hikes. What about the first half of the year? Is this sustainable growth or just a temporary spike? We need to see if this demand holds without the artificial push.
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Sarah B
The shift to SUVs is fascinating. Over 55% penetration! It reflects changing Indian family needs and road conditions. Also good to see small cars recovering post-GST. A balanced market is healthy.
R
Rohit P
The two-wheeler and three-wheeler numbers are equally impressive! 21% growth is no joke. This shows strong demand across all vehicle segments, from rural motorcycles to urban scooters. Real signs of broad-based economic recovery.
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Michael C
As someone in the auto component industry, this is very welcome news. More vehicle sales mean more business for the entire supply chain. Hoping the 1-4% forecast for FY26 is a conservative one and we beat it!

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