
India’s automobile industry delivered a stellar performance in 2025, registering record-breaking sales across segments, including passenger vehicles, two-wheelers, three-wheelers, and commercial vehicles. Data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday shows that strong festive demand, tax relief measures, and easier financing conditions drove the surge.
Passenger Vehicles Hit New Highs
Passenger vehicle sales (cars, SUVs, and vans) rose 20.6% year-on-year to 1.276 million units in the October–December 2025 quarter, marking the highest-ever sales recorded in any third quarter.
For the full calendar year 2025, passenger vehicle sales stood at 4.49 million units, up 5% compared to 2024. December 2025 alone witnessed a sharp jump, with sales reaching 399,216 units — a robust 26.8% increase over December 2024.
What Drove the Growth
SIAM attributed the strong momentum to multiple factors, including GST rate cuts, personal income tax relief, consecutive repo rate reductions by the Reserve Bank of India (RBI), and sustained festive-season demand. Passenger vehicle exports also touched record levels, rising 11.7% to 225,000 units in the October–December quarter.
For the full year 2025, exports grew 16% to 863,000 units, supported by strong demand from markets in the Middle East, Africa, and Latin America.
Two-Wheelers Cross 20 Million Mark
Two-wheeler sales (motorcycles and scooters) recorded a historic milestone in 2025, crossing the 20-million-unit mark for the first time. Total sales reached 20.50 million units, up 4.9% year-on-year.
In the October–December quarter, two-wheeler sales jumped 16.9% to a record 5.70 million units. December 2025 saw an exceptional surge of 39.4%, with sales touching 1,541,036 units in a single month.
Exports of two-wheelers also remained strong, rising 24.3% in the October–December quarter and 24.2% over the full year, driven by improving demand in Africa and South Asian markets.
Three-Wheelers Maintain Momentum
Three-wheeler sales increased 14% year-on-year to 215,000 units in the October–December quarter. For calendar year 2025, the segment recorded sales of 788,000 units, reflecting growth of 8.2% and surpassing previous records.
In December alone, three-wheeler sales rose 17.4% to 61,924 units, supported by increased mobility and improved access to financing.
Commercial Vehicles Also Set Records
Commercial vehicle sales (trucks and buses) climbed 21.5% to 290,000 units in the October–December quarter — the highest-ever for a third quarter.
For the full year 2025, commercial vehicle sales reached a record 1.028 million units, marking growth of 7.7%, driven by infrastructure activity, logistics demand, and economic recovery.
Industry Outlook Remains Positive
Commenting on the performance, SIAM President Shailesh Chandra said,
“2025 has been a landmark year for the Indian automobile industry. All segments recorded healthy growth, and exports expanded at a double-digit pace.”
SIAM Director General Rajesh Menon added that the industry is entering the fourth quarter with strong momentum, supported by year-end demand, healthy order books, and lower interest rates, which are expected to sustain growth in the coming months.
Discover more from SD NEWS agency
Subscribe to get the latest posts sent to your email.