Maruti Suzuki India, the largest car maker in India, reported total sales of 217,854 units in December 2025, up from 178,248 units a year earlier. Domestic sales touched an all-time high of 182,165 units, underlining strong demand for compact cars and utility vehicles.
New Delhi: India’s automobile industry wrapped up calendar year 2025 on a strong footing, with most major manufacturers reporting robust year-on-year growth in December, driven by healthy consumer demand, improved rural sentiment, infrastructure spending, and on the back of a favourable macroeconomics.
Passenger vehicle wholesales in India clocked a record 45.5 lakh units in 2025, growing by nearly 6 per cent, turbocharged by GST 2.0 in the latter part of the year that helped overcome a sluggish start, as per industry estimates.
The growth in 2025 was led by record annual sales from the likes of market leader Maruti Suzuki India, Mahindra & Mahindra, Tata Motors Passenger Vehicles, Toyota Kirloskar Motor, and Skoda Auto India, thereby helping the industry beat the previous highest of 43.05 lakh units clocked in 2024.
Home-grown automakers Mahindra & Mahindra and Tata Motors Passenger Vehicles leapfrogged long-time number two player Hyundai Motor India to become the second- and third-largest PV makers by volume in 2025, with the South Korean arm slipping to fourth position.
Maruti Suzuki India, the largest car maker in India, reported total sales of 217,854 units in December 2025, up from 178,248 units a year earlier. Domestic sales touched an all-time high of 182,165 units, underlining strong demand for compact cars and utility vehicles.
For the full calendar year 2025, Maruti Suzuki recorded its highest-ever total sales of 2.35 million units, including record exports of nearly 396,000 units.
Tata Motors Passenger Vehicles Ltd on Thursday reported a 14.1 per cent growth in total sales to 50,519 units in December 2025 compared to 44,289 units in the same month of 2024.
Domestic passenger vehicle sales were at 50,046 units last month against 44,230 units in December 2024, up 13.1 per cent, Tata Motors Passenger Vehicles Ltd said in a regulatory filing.
The total electric vehicle sales surged 24.2 per cent to 6,906 units against 5,562 units in December 2024, it added.
The total sales in the domestic and international market for Q3 FY26 stood at 1,71,013 units compared to 1,39,829 units during Q3 FY25, the company said.
“CY25 saw steady progress for the PV industry, powered by a growing preference for SUVs and accelerating adoption of cleaner, emission-friendly powertrains.
“For Tata Motors, it was the fifth consecutive year of record-breaking annual sales, with 587,218 units sold, including the highest-ever EV volumes of 81,125 units in a calendar year,” Tata Motors Passenger Vehicles MD and CEO Shailesh Chandra said.
Looking ahead, he said, “We remain confident about the PV industry’s growth. With deliveries of recently introduced products commencing in Q4 and an exciting pipeline of launches and innovations on the anvil, Tata Motors is well poised to accelerate its growth trajectory in FY26”.
Mahindra & Mahindra also ended the year on a high note, clocking 86,090 vehicles in December, a 25 per cent year-on-year increase including exports.
The company sold 50,946 SUVs domestically, reflecting continued consumer preference for sport utility vehicles.
Mahindra highlighted that 2025 marked its highest-ever annual volumes in SUVs and light commercial vehicles, supported by strong demand in both urban and semi-urban markets.
Its monthly sales grew 23% in December.
Its sales growth of 18% so far in fiscal year 2026 is among the fastest in the world’s third-largest car market, helped by new launches and customer preference for its tech-loaded SUVs.
This has helped the Scorpio manufacturer leapfrog Hyundai India, and Tata to the no. 2 spot in the current financial year.
Toyota Kirloskar Motor posted an impressive December performance, with total sales of 39,333 units, up 33 per cent year-on-year. Domestic sales rose 37 per cent to 34,157 units. This capped a record calendar year for Toyota, with 388,801 units sold in 2025, its highest-ever annual tally in India.
The commercial vehicle (CV) segment continued to benefit from infrastructure-led demand.
Ashok Leyland reported 21,533 vehicles sold in December 2025, including exports, marking a 27 per cent growth over the same month last year. Medium and heavy commercial vehicles (M&HCVs), particularly buses, saw strong traction, reflecting sustained public and private sector spending
VE Commercial Vehicles (VECV), part of the Eicher group, sold 10,384 vehicles in December, up nearly 25 per cent year-on-year. Growth was led by domestic trucks and buses, while exports also recorded healthy expansion.
Mahindra’s Trucks and Buses business reported sales of 2,260 vehicles in December, registering a sharp 43 per cent growth, with both cargo and passenger segments contributing to the uptrend.
In the two-wheeler space, Royal Enfield continued its growth trajectory, selling 103,574 motorcycles in December 2025, a 30 per cent increase over the previous year. Domestic sales grew 37 per cent, while exports stood at over 10,000 units. The company attributed the performance to sustained demand for its core models and successful new launches during the year.
B Govindarajan, Managing Director – Eicher Motors Ltd. and Chief Executive Officer, Royal Enfield, said December 2025 closes out a truly defining year for Royal Enfield.
“It’s been a year of strong growth, record performance and most importantly, deeper connections with our riding community. Our new launches during the year have been received with great enthusiasm and the continued demand for our existing motorcycles further reinforces the trust riders place in us. As we move into the new year, we are confident of sustaining the growth momentum and taking our Pure Motorcycling philosophy further,” B Govindarajan said in the company statement.
Rural demand remained a key growth driver. Mahindra’s farm equipment business sold 31,859 tractors in December, up 39 per cent year-on-year, supported by strong agricultural output, improved cash flows, and favourable weather conditions.
Escorts Kubota Limited also reported robust growth, with tractor sales rising 38.5 per cent to 7,577 units in December. The company cited supportive government policies, strong Kharif output, and positive rural sentiment as key demand drivers.
“The domestic tractor industry sustained its strong performance in December, propelled by supportive government policies, lower GST rates, and continued state subsidies that enhanced affordability for farmers. Industry benefited from a strong Kharif output, enhanced Rabi sowing as compared to last year, increased water availability, and positive rural sentiment, all of which contributed to heightened retail demand,” Escorts Kubota said in a statement. “With these encouraging factors in place, the industry is poised to sustain its growth momentum in the upcoming months.”
While most segments posted growth, construction equipment showed some moderation. Escorts Kubota sold 812 construction machines in December, slightly lower than last year, impacted by high base effects and slower project mobilisation. However, the company noted improving sentiment compared to previous months and expects gradual recovery aided by infrastructure spending.
“Sales volume for December 2025 is not comparable to December 2024, which saw a pre-buying ahead of emission norm changes last year, however there is visible improvement in the sentiment in Dec compared to previous months. In the short run, the Construction Equipment industry continues to face challenges from slow project mobilization, and weak rental rates & elevated costs from CEV Stage V compliance, though government infrastructure spending and fund-flow initiatives are expected to support gradual recovery into 2026,” the company said in their statement.
The new GST rates and slabs are having a wide-scale positive impact on the many items related to heavy industries, be it auto, transport, or auto ancillaries.
For instance, the rate cuts for the automobile sector are across different categories. It includes bikes (up to 350cc, which also accommodates bikes of 350cc), Buses, Small cars, Medium and luxury cars, Tractors (<1800cc), among others.
The rates are also being reduced on auto parts.
For small cars, the GST rate has been reduced to 18% from 28%. The small car encompasses petrol engine cars of<1200 cc and not exceeding 4 metres in length, and diesel cars of <1500 cc and not exceeding 4 metres in length.
For large cars, however, GST is tagged at a flat 40% with no cess. For the agricultural sector, tractors, which were previously taxed at 12 per cent GST, are now taxed at 5 per cent. Tractor tyres and parts, which were in the 18 per cent slab, have also been brought down to 5 per cent.
For buses with a seating capacity of 10+ persons, GST has been reduced from 28% to 18%. The majority of the components used for the manufacture of motorcars and motorbikes have also been reduced.
In a historic move to simplify the Goods and Services Tax(GST), GST Council in its 56th meeting in early September has reduced the GST structure from four slabs (5%, 12%, 18%, 28%) to two main rates–5% (merit rate) and 18% (standard rate) along with a 40% special rate for sin/luxury goods. These changes came into effect on September 22, 2025.