Auto Sales Surge 27% in Dec 2025 on Robust Demand
Overview
Indian auto dispatches jumped 27% year-on-year in December 2025, with passenger vehicles reaching 399,216 units and two-wheelers hitting 1,541,036 units. Strong demand for utility vehicles, supported by interest rate cuts and stable economic conditions, drives a positive outlook for the automotive sector through fiscal year 2025-26.
Passenger vehicle dispatches from Indian manufacturers to dealers surged 27% year-on-year in December 2025, fueled by strong consumer appetite for utility vehicles. Total passenger car sales reached 399,216 units, a significant increase from 314,934 units in the prior year period.
December Dispatch Surge
The automotive industry body, the Society of Indian Automobile Manufacturers (SIAM), reported robust growth across segments. Two-wheeler dispatches saw an even more substantial jump, rising 39% year-on-year to 1,541,036 units from 1,105,565 units. Three-wheeler sales also climbed 17% to 61,924 units.
Positive Outlook for FY2025-26
Entering the fourth quarter of fiscal year 2025-26, the industry maintains strong momentum. SIAM anticipates continued steady wholesale and retail volume growth. Factors supporting this optimism include a healthy pipeline of bookings, the full impact of interest rate cuts on loans passed on to consumers, stable macroeconomic conditions, and supportive government policy reforms. The industry body expects the fiscal year to conclude on a positive growth trajectory, with policy tailwinds reinforcing recent performance.
