Passenger vehicle sales reach new high in 2025

India’s passenger vehicle dispatches to dealers hit a record high in 2025, boosted by price cuts under GST reforms and strong festive-season demand, the Society of Indian Automobile Manufacturers (SIAM) said on Tuesday.

Overall passenger vehicle wholesales rose 5 per cent year-on-year to 44.89 lakh units in 2025, compared with 42.75 lakh units in 2024. Utility vehicle dispatches grew 7 per cent to 29.54 lakh units, while passenger car wholesales rose slightly to 13.79 lakh units. Van dispatches saw a 1 per cent increase.

Other segments also posted historic dispatches. Three-wheeler sales rose 8 per cent to 7.88 lakh units, and commercial vehicle dispatches increased 8 per cent to 10.27 lakh units. Two-wheeler sales stood at 2.05 crore units, up 5 per cent from 2024.

“2025 was a landmark year for the Indian auto industry,” said SIAM President Shailesh Chandra. “Structural reforms, including GST 2.0, income tax relief, and interest rate cuts, created a positive environment for demand. The reduction in GST rates made vehicles more affordable, giving fresh momentum to sales.”

Exports also recorded double-digit growth across segments in 2025. SIAM expects the positive trend to continue in 2026, supported by stable macroeconomic conditions, improving affordability, and continued policy support.

SIAM Director General Rajesh Menon said all vehicle segments recorded their highest ever third-quarter sales in 2025-26, with double-digit growth. In December 2025, passenger vehicle dispatches rose 27 per cent to 3,99,216 units, two-wheelers increased 39 per cent to 15.41 lakh units, and three-wheelers grew 17 per cent to 61,924 units.

With year-end sales momentum, healthy booking pipelines, and policy-led tailwinds, the industry expects FY 2025-26 to close on a positive growth trajectory, while remaining watchful of global developments affecting supply chains and exports.