India Auto Retail Sales Rise 14.63% in December; 2025 Volumes Up 7.71% to 28.16 Million

Indian automobile retail sales rose 14.63% year-on-year in December 2025, supported by rural demand and pre-buying ahead of likely price hikes. According to data released by the Federation of Automobile Dealers Associations today, total vehicle retail sales for the month stood at 2.03 million units, compared to 1.77 million in December 2024.

FADA President C S Vigneshwar stated: “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.”

December 2025 Performance
Passenger Vehicles  sales rose 26.64% to 379,671 units,  while commercial vehicles volumes increased 24.60% to 83,666 units. Two-Wheelers retails grew 9.50% to 1.32 million units, Three-Wheelers sales rose 36.10% to 127,772 units.

Tractors sales increased 15.80% to 115,001 units, and Construction Equipment sales declined 18.54% to 5,820 units.

Rural passenger vehicle demand grew 32.40% year-on-year in December, compared to 22.93% growth in urban centres. PV inventory levels decreased by approximately 7 days to 37–39 days as dealers engaged in stock liquidation of Model Year 2025 vehicles.

For the calendar year 2025, total retail sales reached 28.16 million units. FADA described the year as a “game of two halves,” citing a muted January–August period followed by a recovery from September to December. Attributed causes included the government’s “GST 2.0” rate rationalisation for mass segments.

Outlook
The FADA Member Survey indicates that 70.48% of dealers expect growth in January 2026. The association anticipates momentum to increase in the second half of the month following the Makar Sankranti and Pongal festivals and the start of the marriage season. Potential headwinds include supply constraints and effective inventory management.

For the January–March 2026 quarter, 74.91% of dealers expect growth. Factors supporting this outlook include the 5.25% repo rate, expectations for a consumption-supportive Union Budget, and favourable rabi sowing metrics.