India’s mass passenger vehicle (PV) market closed calendar year 2025 on a strong note, with December wholesale volumes underscoring a broad-based recovery driven by policy support, easing inflationary pressures and sustained consumer demand. The industry’s domestic dispatches rose 26% YoY in December to 404,229 units, marking one of the strongest monthly performances in recent years and reinforcing the view that the sector has entered a structurally stronger phase after several quarters of volatility.
The rebound was led by a combination of favourable macro conditions, most notably GST rationalisation, easing interest rates, and a revival in rural demand, alongside aggressive product actions by automakers. The revival was broad-based, with seven of the top ten mass PV manufacturers reporting YoY growth, and momentum extending across SUVs and entry-level hatchbacks.
Maruti’s Might
Maruti Suzuki remained India’s largest passenger vehicle maker, reporting domestic sales of 178,646 units in December, up 37% YoY. The performance was led by strong demand for its entry-level and compact models, aided by improving affordability and a recovery in rural markets. Sales of compact cars rose 43% YoY, mini cars surged 92%, while utility vehicle volumes grew 33%.
The automaker closed calendar year 2025 with its highest-ever retail sales of 1.87 million units, signalling a broad-based recovery across segments. December was particularly strong, with retail volumes of 286,000 units. The company’s dealer inventory fell to just three days’ supply, pointing to tight supply conditions.
At the end of December, Maruti Suzuki’s pending bookings stood at around 175,000 units, reflecting sustained demand across both urban and non-urban markets. The automaker attributed the rebound to GST-led affordability gains, easing interest rates, and improving consumer sentiment. Demand from smaller towns and rural markets outpaced that in major metros, the company said.
“From October onwards, the market has seen strong traction,” said Partho Banerjee, Senior Executive Officer, Marketing and Sales. “GST rationalisation, income tax relief and a 100 basis point cut in interest rates have all supported demand. If these tailwinds continue and the monsoon remains normal, there is no reason why the auto industry should not grow at 6-7% in 2026.”
Close Contest For 2nd Spot
Mahindra continued its strong momentum in the passenger vehicle market in December, clocking domestic sales of 50,946 units, up 23% YoY, to retain its position as the second-largest player. The performance was led by robust demand for its SUV portfolio, including the Scorpio-N, XUV700 and Thar. For the April-December period, Mahindra sold 476,476 units, marking an 18% YoY increase.
“The calendar year 2025 ended on a positive note, with Mahindra recording its highest-ever volumes in both the SUV and LCV (<3.5T) segments,” said Nalinikanth Gollagunta, CEO of the Automotive Division at Mahindra & Mahindra. “This reflects the sustained strength of our product portfolio and growing customer preference for our SUVs.”
Tata Motors Passenger Vehicles, meanwhile, remained close behind, reporting domestic sales of 50,046 units in December, up 13% YoY. Its overall electric vehicle volumes rose 24% to 6,906 units, supported by strong demand for models such as the Nexon, Punch and Tiago. The company’s diversified powertrain strategy across ICE, CNG and EVs continued to underpin performance.
“December was another standout month as we continued our growth trajectory with 22% growth YoY,” said Shailesh Chandra, Managing Director and CEO, Tata Motors PV. “Retail sales outpaced wholesales, bringing dealer inventory down to around 18 days, which reflects our disciplined, demand-led approach.”
Chandra added that 2025 marked the fifth consecutive year of record sales for the company, with volumes reaching 587,218 units. EV sales touched an all-time high of 81,125 units during the year, reinforcing Tata Motors’ leadership in the electric mobility space.
Looking ahead, Tata Motors remains optimistic about the industry’s outlook. “With deliveries of recently launched models (Sierra and the petrol versions of the Harrier and Safari) beginning in Q4, and a strong pipeline of new products, we are well positioned to sustain momentum into FY26,” Chandra said.
Hyundai’s Exports Driven Growth
Hyundai Motor India closed December 2025 with total sales of 58,702 units, registering a 6.6% YoY increase, as export momentum offset a relatively flat domestic performance following the festive peak. The Korean carmaker’s exports rose 26.5% YoY in December, reinforcing Hyundai’s “Made-in-India, Made-for-the-World” strategy.
Tarun Garg, Managing Director and CEO of Hyundai Motor India, attributed December’s performance to positive momentum from GST 2.0 reforms. Domestic sales, while relatively steady after a strong festive season, continued to reflect healthy underlying demand.
Hyundai’s performance in the latter half of 2025 has been supported by sustained interest in its refreshed portfolio, particularly in the compact SUV segment. The newly launched Hyundai Venue has been a key contributor, garnering over 32,000 bookings within a month of launch and crossing 55,000 bookings by December, underlining strong consumer traction.
Toyota, Kia, And Others
Toyota Kirloskar Motor also delivered a strong performance in December, with overall sales rising 33% to 39,333 units. The company benefited from robust demand for the Innova Hycross, Fortuner and Urban Cruiser Hyryder. Exports contributed meaningfully, reflecting the company’s growing integration of India into its global supply chain.
In December, Toyota clocked domestic sales of 34,157 units, up from 30,085 units in November, while export volumes climbed to 5,176 units from 3,667 units in the previous month. In 2025, the company sold 388,801 units, achieving 19% growth over the 326,329 units sold in 2024. The 2025 sales comprised 351,580 units in the domestic market, representing 17% growth, and 37,221 units in exports, marking 42% growth.
Kia India posted one of the strongest growth rates among major automakers, with its domestic volumes rising 108% YoY to 18,659 units. The figure represents the company’s highest December sales since entering the Indian market in 2019. For the full year 2025, the company recorded wholesale volumes of 280,286 units, representing 15% growth over 245,000 units sold in 2024. Domestic sales reached 261,627 units through November, reflecting steady traction across its portfolio.
Atul Sood, Senior Vice President – Sales and Marketing at Kia India, said the performance was driven by a combination of new product introductions, improved trim-level offerings across models such as the Seltos, Carens and Sonet, and operational efficiencies. He added that supportive policy measures, including GST-related reforms, helped sustain demand momentum.
Other automakers also reported positive trends. Honda Cars India posted a 3% YoY increase in December sales, supported by consistent demand for the City, Amaze and Elevate. Skoda Auto India continued its recovery with a 22% rise in wholesale volumes, aided by strong traction for the Kylaq and renewed interest in its sedan portfolio. Renault India, meanwhile, recorded a 33% increase in sales, driven by the refreshed Triber and Kiger, which helped sustain its turnaround in the Indian market.
A handful of passenger vehicle makers reported a decline in domestic wholesale volumes in December, even as the broader market remained on a growth trajectory. JSW MG Motor posted a 13.5% YoY decline, with sales falling to 6,500 units from 7,516 units a year earlier, reflecting softer demand across its portfolio. Volkswagen India also saw volumes slip 11% to 4,256 units, amid a challenging environment for mass-market sedans and a relatively limited product line-up.
Nissan Motor India recorded a 10% YoY decline, with sales at 1,902 units, as the company continued to grapple with a narrow portfolio and intense competition in the compact SUV and hatchback segments. These declines stood in contrast to the broader industry trend, where most major manufacturers posted strong growth on the back of improved demand conditions, new product launches and easing cost pressures.
2025 and the Road Ahead
After a subdued start to the year, India’s passenger vehicle market regained momentum in the final quarter of 2025, aided by GST 2.0, easing interest rates, and a wave of new model launches that revived consumer demand. The recovery helped offset the softness seen in the first half, when high base effects and a slowing macro environment weighed on volumes.
Despite these headwinds, the industry closed the year on a stronger footing, with total passenger vehicle sales estimated at around 4.58 million units. This positioned India as the world’s second-fastest growing major car market, behind only China, underscoring the resilience of domestic demand even amid global uncertainty.
Looking ahead, the industry remains cautiously optimistic. Most automakers expect demand to stay resilient through 2026, supported by stable macroeconomic conditions, improving rural incomes, and a steady stream of new launches across internal combustion, hybrid, and electric segments.
While challenges such as input cost pressures and evolving regulatory norms persist, the overall trajectory suggests that the Indian passenger vehicle market has entered a more balanced and sustainable growth phase.