Passenger vehicle (PV) retail sales increased by 9.7 per cent to 44,75,309 units in 2025 from 40,79,532 units a year earlier. Two-wheeler sales grew 7.24 per cent to 2,02,95,650 units, while three-wheeler retail rose 7.21 per cent to 13,09,953 units.  

Retail vehicle sales in India rose by 7.71 per cent in calendar year 2025 to 2,81,61,228 units, compared with 2,61,45,445 units in 2024, aided by policy support and improved consumer sentiment, according to the Federation of Automobile Dealers Associations (FADA).

Passenger vehicle (PV) retail sales increased by 9.7 per cent to 44,75,309 units in 2025 from 40,79,532 units a year earlier. Two-wheeler sales grew 7.24 per cent to 2,02,95,650 units, while three-wheeler retail rose 7.21 per cent to 13,09,953 units. Commercial vehicle (CV) sales also registered a healthy 6.71 per cent growth at 10,09,654 units during the year.

FADA President C S Vigneshwar said 2025 unfolded in two distinct phases. The January–August period remained subdued despite supportive macroeconomic measures such as direct-tax relief in the Union Budget and cumulative RBI rate cuts. During this phase, buyers remained value-conscious and financing approvals were selective, leading to uneven demand across regions.

The momentum improved sharply from September onwards following the rollout of GST 2.0 rate rationalisation. Significant tax reductions for mass segments — including small cars, two-wheelers up to 350cc, three-wheelers and key commercial vehicle categories — enhanced affordability and boosted sentiment, resulting in stronger sales through December.

The year also highlighted the ongoing mobility transition, with electric vehicle penetration rising across two-wheelers, passenger vehicles and commercial vehicles, while remaining dominant in three-wheelers. CNG vehicles strengthened their presence in PV and CV segments, reflecting a diversified fuel mix.

Looking ahead, FADA said the near-term retail outlook remains upbeat, with nearly 75 per cent of dealers expecting growth over the next three months. Supportive factors include post-GST 2.0 sentiment, festival and wedding season demand, improving rural prospects and stable interest rates, even as OEM price hikes may sustain buying urgency.