India's Auto Sales Hit Record Highs in 2025 on Strong Festive Demand & Policy Push

Data released by the Society of Indian Automobile Manufacturers (SIAM) highlighted robust expansion in December 2025, double-digit growth during the October-December quarter, and a healthy full-year performance compared with 2024.

December sales reflected a strong year-end push, with total passenger vehicle (PV) sales rising 26.8 per cent year-on-year to 399,216 units.

The month underscored the continued consumer preference for personal mobility, with demand remaining resilient across segments.

Two-wheelers recorded an even sharper jump, climbing 39.4 per cent to 1.54 million units.

Growth was broad-based within the category, led by scooters, which surged 42.1 per cent, followed closely by motorcycles at 37.7 per cent and mopeds at 39.4 per cent.

Three-wheelers also posted healthy gains in December, with overall sales rising 17.4 per cent to 61,924 units.

Passenger carriers and goods carriers both expanded at double-digit rates, reflecting steady urban and semi-urban mobility demand, while electric sub-segments showed mixed trends.

Overall, December's performance pointed to strong retail traction heading into the new year.

The October-December quarter emerged as a standout period for the industry. Total passenger vehicle sales jumped 20.6 per cent year-on-year to 1.28 million units, driven by balanced growth across passenger cars, utility vehicles and vans. Utility vehicles remained the primary growth engine, rising 20.9 per cent, underlining the continued shift in consumer preference toward larger, feature-rich models.

Commercial vehicles (CVs) posted a strong 21.5 per cent increase to 290,085 units during the quarter. Both medium and heavy commercial vehicles (M&HCVs) and light commercial vehicles (LCVs) contributed to this expansion, with goods carriers outperforming passenger carriers.

Three-wheelers grew 14.0 per cent in October-December quarter, reaching 215,211 units, largely driven by passenger carriers, while goods carriers posted moderate growth. Electric three-wheelers remained volatile, with e-rickshaws declining but e-carts showing strong gains.

Two-wheelers, the largest segment by volume, crossed 5.7 million units during the quarter, marking a 16.9 per cent increase over the same period last year. Scooters once again led growth with a 26.1 per cent rise, reflecting strong urban demand, while motorcycles and mopeds recorded steady, single- to low double-digit growth.

Overall, total domestic vehicle sales during the quarter climbed 17.6 per cent, highlighting the industry's strong recovery momentum.

For the full calendar year January-December 2025, the Indian automobile industry recorded total domestic sales growth of 5.1 per cent compared with 2024. Passenger vehicle sales increased 5.0 per cent to 4.49 million units, supported primarily by a 7.4 per cent rise in utility vehicles, while passenger cars and vans posted modest gains.

Commercial vehicle sales grew 7.7 per cent to 1.03 million units for the year, with both M&HCVs and LCVs contributing to the expansion. Passenger carriers within the LCV segment posted particularly strong growth.

Three-wheelers ended the year with an 8.2 per cent increase in sales, driven mainly by passenger carriers, while goods carriers grew at a slower pace. Electric three-wheelers continued to see uneven performance.

Two-wheelers crossed the 20-million-unit mark in 2025, registering 4.9 per cent growth year-on-year. Scooters remained the strongest sub-segment, expanding 12.7 per cent, while motorcycles saw marginal growth and mopeds declined slightly.

"The reduction of GST rates made vehicles more affordable and injected fresh momentum into the sector. Growth during the year has been broad-based across segments, with Passenger Vehicles, Commercial Vehicles and Three-Wheelers recording their highest ever sales and Two-wheelers posting the 2 nd highest sales ever, in a calendar-year," Shailesh Chandra, President, SIAM, said.

Looking ahead, the industry expects the positive momentum to continue well into 2026, supported by stable macro-economic conditions, improving affordability and continued policy support, Chandra said. "The industry will also continue to monitor geopolitical developments to ensure resilience in supply chain and export volumes."

- ANI