SUV Boom & New Launches Drive India's Auto Industry to Record 2025 Finish

India's automobile industry concluded 2025 with robust growth, fueled by strong SUV demand, a flurry of new model launches, and festive-season momentum. Major players like Audi, Renault, Skoda, Kia, and Mahindra reported significant year-on-year increases, with several recording their best-ever monthly or annual sales. The second half of the year saw a particular surge, attributed to improving consumer confidence and supportive market conditions. This positive momentum sets a confident stage for the industry as it moves into 2026.

Key Points: India Auto Industry 2025: SUV Boom Drives Record Sales

  • SUV demand drives growth
  • Luxury & mass market brands surge
  • Festive season & new launches boost sales
  • Record-breaking monthly performances
2 min read

SUV boom, new launches drive India's auto industry to strong finish in 2025

India's auto industry ended 2025 strong, led by SUV demand and new launches. Audi, Renault, Skoda, Kia, and Mahindra report major growth.

SUV boom, new launches drive India's auto industry to strong finish in 2025
"The strong finish to 2025 reflects growing customer confidence and the success of its SUV-led strategy. – Mahindra & Mahindra"

New Delhi, Jan 1

India's automobile industry entered 2026 on a strong and confident note, with several leading car manufacturers reporting solid growth and renewed momentum in calendar year 2025.

Despite a year shaped by changing market conditions, customer demand picked up steadily, especially in the second half, driven by new launches, festive-season buying, and improving consumer confidence.

Luxury carmaker Audi India closed 2025 with retail sales of 4,510 units, supported by steady demand for its SUVs, performance cars, and top-end models.

Vehicles such as the Audi Q7, Q8, RS Q8 Performance, and S5 Sportback continued to attract buyers, while popular models like the Audi Q3, A4, A6, and Q5 maintained consistent traction.

The company highlighted that regulatory support such as GST rationalisation and strong festive demand helped boost customer sentiment.

Looking ahead, Audi India said it is preparing for an action-driven 2026 with new launches, expanded customer engagement, and people-focused initiatives.

Renault India also reported a clear turnaround in the second half of 2025, posting an 18.2 per cent year-on-year growth in H2.

The momentum strengthened from the third quarter and peaked in the fourth quarter, which saw a growth of over 27 per cent.

December 2025 emerged as one of Renault's best months, with sales rising 33.4 per cent year-on-year to 3,845 units.

Skoda Auto India marked 2025 as its most successful year ever, coinciding with the brand's 25th anniversary in the country.

The company recorded sales of 72,665 cars, more than doubling its volumes compared to 2024 and registering a remarkable 107 per cent growth.

Kia India ended CY2025 with total wholesale sales of 280,286 units, reflecting a 15 per cent growth over the previous year.

The company recorded its best-ever December since inception, with sales jumping 105 per cent year-on-year to 18,659 units.

The Kia Sonet crossed the 100,000-unit sales mark for the second year in a row, underlining its strong leadership in the compact SUV segment.

Kia also continued expanding its presence across India, reaching 369 cities with 821 touchpoints by the end of the year.

Mahindra & Mahindra capped off December 2025 with its highest-ever volumes in SUVs and light commercial vehicles.

The company sold 50,946 SUVs in the domestic market during the month, registering a 23 per cent growth, while total vehicle sales, including exports, stood at 86,090 units, marking a 25 per cent year-on-year increase.

Commercial vehicle sales also grew strongly, supported by sustained demand in the LCV segment. Mahindra said the strong finish to 2025 reflects growing customer confidence and the success of its SUV-led strategy.

- IANS

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Reader Comments

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Priyanka N
Skoda doubling its sales is impressive! They've really turned things around with models like the Kushaq and Slavia. The 'Made in India, for India' strategy is finally paying off for many global brands. Quality and features have improved so much.
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Aman W
While growth is good, I have a respectful criticism. This SUV boom is worrying for our cities' pollution and parking woes. Can we have a parallel push for affordable, feature-rich electric vehicles? The focus seems overly skewed towards large petrol/diesel SUVs.
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Sarah B
The festive season demand is a very Indian phenomenon! Diwali and Dhanteras really drive sales. Companies plan their launches around it. My family also upgraded our car in October. It feels like the right time with offers and new models.
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Karthik V
Mahindra hitting 50k+ SUVs in a single month is phenomenal. The Scorpio-N and XUV700 are absolute blockbusters. It shows Indian manufacturers can not only compete but lead when they get the product right. Jai Hind! 🇮🇳
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Michael C
Interesting to see Audi's numbers. The luxury segment is growing steadily, which indicates rising disposable income in the upper middle class. The GST rationalisation mentioned must have helped. Q7 and Q8 are status symbols in South Mumbai and Delhi.

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