Automobile retail sales in CY25 grew 7.71% year-on-year (YoY) with total sales of over 2.81 crore vehicles according to data released by the Federation of Automobile Dealers Associations (FADA) on Tuesday (January 6, 2026).

FADA president C.S. Vigneshwar said: “India’s auto retail delivered a confident close, with total retails at 2,81,61,228 units, registering a 7.71% YoY growth. The year, however, was a tale of two halves — January to August remained subdued despite supportive macro cues such as direct tax relief in the Union Budget and RBI’s cumulative rate easing through 2025. During this phase, customers stayed value-conscious and financier approvals remained selective in pockets, resulting in uneven conversions across markets.”

“The turning point came from September onwards, when the landmark GST 2.0 rate rationalisation — including meaningful reductions for mass segments like small cars, two-wheelers (up to 350 cc), three-wheelers and key commercial categories — improved affordability and lifted sentiment, leading to a clear upshift through September to December,” he said.

Category-wise, two-wheelers (2W) grew 7.24%, passenger vehicles (PV) rose 9.70%, commercial vehicles (CV) expanded 6.71%, and tractors posted 11.52% growth.

“Importantly, the year saw broad-based participation — urban retail grew 8.20% and rural 7.31% — and within PVs, rural demand was a standout, growing 12.31% versus 8.08% in urban markets, underlining the strengthening spread of personal mobility beyond metros,” Mr. Vigneshwar said.

CY’25 also reinforced the transition underway — EV share moved up in 2W, PV, CV and remained dominant in 3W, while CNG strengthened its presence in PV and CV, signalling a more diversified mobility mix, he said.

“Overall, CY’25 closes on a celebratory note—stronger demand visibility, healthier enquiry pipelines and a more confident consumer, as we step into 2026,” he added.

December proved to be a strong finish to the calendar year for auto retail. The industry retailed 20,28,821 vehicles, posting a healthy 14.63% YoY growth.

“The month clearly benefited from the continued positive sentiment post GST 2.0, year-end offers, and a fair amount of pre-buying ahead of expected price revisions in January, helping dealers convert enquiries and spillover bookings in a time-bound manner,” Mr. Vigneshwar said.

In two-wheelers, retail was up 9.50% YoY. While demand stayed steady, the month was also shaped by select supply constraints and model-wise availability, with many customers advancing their purchase decisions due to impending price increases.

“It is encouraging to see the transition continue — EV share in 2W improved to 7.40% (vs. 6.13% last year), reflecting rising acceptance, especially in urban markets where growth remained stronger than rural on the back of better liquidity flow,” he added.

Commercial vehicles reported 24.60% YoY growth. The momentum was led by underlying economic activity, improved goods movement and sustained demand in the load segment, with medium commercial vehicle (MCV) growth particularly strong and LCVs/HCVs also reporting healthy expansion.

“Passenger carrier demand remained supportive as well. That said, we continue to flag financing turnaround time and approval selectivity as a friction point in parts of the market — something that needs sharper focus to sustain momentum,” the FADA president said.

Passenger vehicles continued their positive run, up 26.64% YoY, with rural PV growth at 32.40% outpacing urban growth — an important indicator of widening mobility demand beyond metros, according to FADA.

Dealers also used December to liquidate Model Year (MY) 2025 stocks on the back of attractive schemes and better model mix availability. Inventory for PVs is currently around 37-39 days, which reduced by around 7 days from previous month, it said.

The fuel mix also underlines the shift underway — CNG is now 21% of PV retail and EV is 4%, signalling a steadily diversifying customer preference, it added.

Published – January 06, 2026 05:06 pm IST

Maruti Suzuki India Ltd. reported a more than 7% fall in domestic sales at 1,44,145 units from 1,55,779 units sold in August 2024.
| Photo Credit: Reuters

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Retail sales of vehicles across categories in India grew by 11.21% at 32,08,719 units in November, as compared to 28,85,317 units in the same month last year riding on two-wheeler demand, Federation of Automobile Dealers Associations said on Monday (December 9, 2024).

Retail sales of two-wheelers were at 26,15,953 units last month, as compared to 22,58,970 units in November 2023, a growth of 15.8% buoyed by the festive spillover.

On the other hand, passenger vehicle (PV) retail was down 13.72% at 3,21,943 units, as against 3,73,140 units in the year-ago month. The PV segment faced notable headwinds, Federation of Automobile Dealers Associations (FADA) said in a statement.

“While November was initially expected to build on its prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations,” FADA President, C.S. Vigneshwar said in a statement.

He further said, “although rural markets offered some support, primarily in the two-wheeler category, marriage-related sales remained subdued.” The late occurrence of Deepawali at the end of October also caused a spillover of festive registrations into November, affecting the month’s sales trajectory, Mr. Vigneshwar added.

On PV retail, he said, “dealers cited weak market sentiment, limited product variety and insufficient new launches, compounded by the shift of festive demand into October.” Mr. Vigneshwar further said, “although rural interest was present, it failed to significantly improve sentiment. Inventory levels have reduced by about 10 days, but to remain high at around 65-68 days.” He reiterated FADA’s request to Original Equipment Manufacturers (OEMs) to further rationalise inventory so that the industry can enter the new year on a healthier footing, reducing the need for additional discounts.

In the commercial vehicles segment, FADA said retail sales were at 81,967 units last month as compared to 87,272 units in November 2023, down 6.08%.

Mr. Vigneshwar said factors such as restricted product choices, older model issues, limited financier support, and the absence of major festivals in November following a strong October impacted CV uptake.

“External elements such as elections, a slowdown in coal and cement industries, and weak market sentiment also weighed heavily on this category,” he added.

FADA said three-wheeler sales in November were at 1,08,337 units, as against 1,03,939 units in the year-ago month, up 4.23%.

On the overall near-term outlook, FADA said, “while the near-term outlook for December is not overwhelmingly strong across segments, it leans towards stability with pockets of potential growth, underlining a sentiment that overall remains cautiously optimistic.” With prospects of a bumper Kharif harvest likely to temper food inflation, the broader macroeconomic environment appears set to improve, potentially aiding consumer sentiment in the months ahead. However, the immediate December outlook derived from dealer feedback is mixed, it added.

In the two-wheeler segment, FADA said, “dealers suggest that while some buyers remain hesitant’ either awaiting new-year models or influenced by subdued post-festive sentiment’ others could be drawn by potential year-end discounts and stable rural demand.” As for the PV category, heavy discounting and improved product availability are expected to help offset weak consumer sentiment and a general year-end lull.

“While some customers are deferring purchases for new-year models, overall interest could pick up due to aggressive offers and end-of-year promotions.

“This sets a tone of cautious optimism, with a moderate chance of improved sales compared to November,” it added.