Car, bike sales surge in December as festive demand, easier loans drive strong year-end push

Vehicles move past electricity pylons in Gurugram

• Passenger vehicle dispatches hit record high in 2025, up 5% year-on-year.
• Utility vehicles led growth, with dispatches up 7 percent to 29,54,279 units
• GST reforms and festive demand boosted sales across all vehicle segments

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Passenger vehicle dispatches from manufacturers to dealerships touched an all-time high in the 2025 calendar year, aided by price cuts following GST reforms and strong festive-season demand, industry body Society of Indian Automobile Manufacturers (SIAM) said on Tuesday.

Overall passenger vehicle wholesales rose 5 per cent year-on-year to 44,89,717 units in 2025, compared with 42,74,793 units in the previous calendar year.

Utility vehicles continued to be the main growth driver, with dispatches increasing 7 per cent to 29,54,279 units last year from 27,49,932 units in 2024. Passenger car wholesales edged up marginally to 13,79,884 units, while van dispatches were higher by 1 per cent compared to the previous year.

Other segments also posted record performance. Three-wheeler dispatches climbed 8 per cent to 7,88,429 units in 2025, up from 7,28,670 units in 2024. Commercial vehicle dispatches rose 8 per cent to 10,27,877 units last year, compared with 9,54,051 units in the year before.

Two-wheeler sales also saw steady growth, rising 5 per cent year-on-year to 2,05,00,639 units in 2025, as against 1,95,43,093 units in 2024.

“2025 has been a landmark year for the Indian auto industry. The year began with a subdued first half, and the industry continued to navigate supply-side challenges. With multiple structural policy reforms, including the income tax relief, successive repo rate cuts and the roll-out of GST 2.0, the foundation for a positive demand environment,” SIAM President Shailesh Chandra said in a statement.

He added that the reduction in GST rates made vehicles more affordable and provided fresh momentum to the sector.

Chandra noted that growth during the year was broad-based, with passenger vehicles, commercial vehicles and three-wheelers recording their highest-ever calendar-year sales, while two-wheelers posted their second-highest sales on record. Exports also registered double-digit growth across vehicle segments in 2025 compared to 2024.

“Looking ahead, the industry expects the positive momentum to continue well into 2026, supported by stable macroeconomic conditions, improving affordability and continued policy support,” Chandra said, adding that the sector would continue to closely monitor geopolitical developments to safeguard supply chains and exports.

SIAM Director General Rajesh Menon said all vehicle segments — passenger vehicles, commercial vehicles, three-wheelers and two-wheelers — recorded their highest-ever third-quarter (Q3) sales in FY2025-26, with double-digit growth over the previous year.

In December 2025, passenger vehicle dispatches surged 27 per cent year-on-year, driven by strong demand for utility vehicles. Total passenger vehicle sales stood at 3,99,216 units last month, compared with 3,14,934 units in December 2024, registering a growth of 26.8 per cent.

Two-wheeler dispatches to dealers jumped 39 per cent year-on-year to 15,41,036 units in December 2025, up from 11,05,565 units in the same month a year earlier. Three-wheeler sales also rose 17 per cent to 61,924 units during the month.

On the outlook, SIAM said the industry has entered the fourth quarter of FY2025-26 with strong momentum after robust double-digit growth across all segments in late 2025. It expects steady traction in both wholesale and retail volumes through the quarter.

The year-end sales push, a healthy booking pipeline and the full pass-through of interest rate cuts announced in 2025 on vehicle loans are expected to support demand, pointing to continued growth in FY2025-26, backed by stable macroeconomic conditions and supportive government policies.

“While remaining watchful of geopolitical developments, the industry expects FY 2025-26 to close on a positive growth trajectory, with policy-led tailwinds firmly in place, sustaining the robust performance witnessed in recent years,” the industry body stated.