India's Auto Retail Market Sees Strong Growth in CY 2025 and December | Quick Digest
India's automotive retail market experienced robust growth in Calendar Year (CY) 2025 and a significant surge in December 2025. Total vehicle retail sales across all segments in CY 2025 reached over 2.81 crore units, marking a 7.71% year-on-year increase. Passenger vehicle sales alone grew by 9.70% for the calendar year.
Indian car retail sales surged 9.70% in CY 2025 to 44.75 lakh units.
December 2025 witnessed a strong 26.64% year-on-year growth in car retail sales.
Maruti Suzuki led CY 2025 sales with 17.86 lakh units, commanding a 39.91% market share.
Mahindra and Tata Motors also posted significant sales growth in CY 2025.
Growth drivers include new product launches, festive demand, and favorable economic policies.
Hyundai experienced a slight decline in overall Calendar Year 2025 retail sales.
India's automotive retail sector demonstrated strong performance in Calendar Year (CY) 2025 and concluded the year with a substantial surge in December 2025. According to data from the Federation of Automobile Dealers Associations (FADA), total vehicle retail sales across all segments in India reached 2,81,61,228 units in CY 2025, reflecting a healthy 7.71% year-on-year (YoY) growth. The passenger vehicle (PV) segment was a key contributor, with retail sales improving by 9.70% to 44,75,309 units for the calendar year.
December 2025 witnessed a particularly strong momentum, with overall car retail sales growing by 26.64% YoY to 3,79,671 units compared to the same month in 2024. This robust performance was corroborated by the Society of Indian Automobile Manufacturers (SIAM), which reported a 27% increase in passenger vehicle dispatches (wholesales) to dealerships in December 2025, totaling 3,99,216 units. Factors contributing to this growth include new product launches, year-end buying incentives, the marriage season, recent Goods and Services Tax (GST 2.0) reductions, and positive consumer sentiment, especially in rural areas.
Among individual manufacturers, Maruti Suzuki maintained its leadership, selling 17,86,226 units in CY 2025 with a 39.91% market share, and 1,50,123 units in December 2025 (retail sales). Mahindra followed with 5,92,771 units in CY 2025, while Tata Motors recorded 5,67,607 units. In December 2025, major players like Maruti Suzuki (1,78,646 units), Mahindra (50,946 units), and Tata Motors (50,046 units) showed significant year-on-year growth in domestic sales (wholesale figures also available). Hyundai, however, experienced a slight decline in CY 2025 retail sales to 5,59,558 units. Toyota, Kia India, and the Skoda VW group reported strong growth in both CY 2025 and December 2025, while JSW MG Motor India faced a decline in December. The industry outlook remains optimistic, with expectations of continued growth into the next fiscal year.
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