The final week of 2025 and the opening days of 2026 offered a natural pause for the Indian automotive industry to take stock of a year that was anything but ordinary. What began on a cautious note ended with record sales months, structural shifts in market leadership, and a growing sense that India’s auto ecosystem is entering a more mature, execution-driven phase.
Calendar year 2025 closed with India’s passenger vehicle industry crossing critical milestones. Monthly wholesales breached the 400,000-unit mark for the first time in December, electric vehicle sales hit record highs across cars and two-wheelers, and exports remained a pillar of growth even as global uncertainty persisted. The numbers confirmed that GST rationalisation, easing interest rates and a steady recovery in rural demand helped the market regain momentum after a volatile start to the year. At the same time, the sales data also revealed deeper structural trends–SUV dominance, the resilience of value-led models like the Dzire, and the widening gap between leaders and laggards.
Beyond the spreadsheets, the week was also defined by narrative shifts. The idea of EV leadership itself came under scrutiny, with Tesla’s once-unquestioned dominance giving way to a broader debate about scale, manufacturing depth and long-term execution. In India, automakers and suppliers alike sharpened their focus on systems, localisation and profitability rather than disruption alone. That theme resonated strongly with Autocar Professional’s Person of the Year 2025, Sudarshan Venu, whose steady, execution-led leadership has propelled TVS Motor into the global top tier while redefining India’s electric two-wheeler landscape.
Policy and institution-building developments added further layers. The PLI Auto scheme crossed a major investment milestone, underlining the government’s role in anchoring India’s manufacturing ambitions. New standards for electric agricultural tractors pointed to the widening footprint of electrification beyond urban mobility. Leadership changes at Hyundai Motor India, fresh IPO filings, cybersecurity incidents and renewed investment activity all signalled an industry that is expanding in breadth.
Here’s the detailed round-up of all major developments from this week:
India’s PLI Auto Scheme Crosses ₹35,657 Crore Investment
India’s Production Linked Incentive scheme for the automotive sector has achieved significant milestones, with cumulative investments reaching ₹35,657 crore and incentive disbursements totaling ₹2,321.94 crore as of December 31, 2025. The scheme has catalyzed the production of over 13.6 lakh electric vehicles while generating nearly 49,000 jobs, according to an official announcement by the Ministry of Heavy Industries.
Indian Standard Released for Electric Agricultural Tractors
The Bureau of Indian Standards has introduced a comprehensive testing standard for electric agricultural tractors, marking a significant milestone in India’s transition toward sustainable farm mechanization.
Union Minister for Consumer Affairs, Food & Public Distribution, Pralhad Joshi, released ‘Electric Agricultural Tractors — Test Code’ at Bharat Mandapam during National Consumer Day 2025 celebrations.
The standard establishes uniform testing protocols to evaluate the safety, reliability, and performance of electric agricultural tractors. It covers critical parameters including power take-off (PTO) power, drawbar power, belt and pulley performance, vibration measurement, and component inspection.
Tarun Garg Becomes First Indian to Lead Hyundai Motor India as MD & CEO
Hyundai Motor India Limited (HMIL) announced that Tarun Garg has assumed the position of Managing Director and Chief Executive Officer, making him the first Indian national to lead the company since its establishment in 1996.
Garg, who has over 32 years of experience in the automotive sector, took charge on January 1, 2026. His appointment represents a shift in the company’s leadership structure, which has been managed by expatriate executives since operations began in India.
Hyundai Motor India Launches Prime Taxi Range for Commercial Mobility Segment
Kia India Launches All-New Seltos Starting at ₹10.99 Lakh
Kia India has announced pricing for the all-new Seltos, starting at ₹10.99 lakh (ex-showroom), introducing the second generation of its mid-size SUV to the Indian market.
The updated Seltos features revised dimensions, measuring 4,460 mm in length, 1,830 mm in width, with a 2,690 mm wheelbase. These measurements position it at the larger end of its segment, contributing to increased interior space.
JSW MG Bets on Extended Buyback to Address EV Resale Concerns
Concerns over the resale value of electric vehicles remain one of the key hurdles to faster adoption of EVs in India. While OEMs have introduced assured buyback programs, JSW MG Motor is now offering an extended buyback program that guarantees a fixed resale value for EVs for up to five years.
The automaker says this extended buyback program is an “industry-first initiative” for mass market EVs to boost consumer confidence, as most of the other OEMs offer a buyback program for only up to three years. The program, which guarantees 40-60% resale value, builds on the company’s existing buyback program, which is for up to three years.
Tata Motors Targets Deep-Mining Shift with High-Torque Prima AutoShift Tippers
India’s mineral hunger for coal, iron ore, and marble is forcing a descent from shallow pits into the more demanding realm of deep mining. Tata Motors, the country’s largest commercial vehicle maker, is eyeing making a mark in this space with the introduction of its Prima 3540.K AutoShift.
The company showcased these products during the recently concluded EXCON 2025 event held in Bengaluru. Global giants such as Scania and Volvo are among other prominent players operating in this space.
Engines of Change: Ashok Leyland’s Diversification Gambit Pays Off
The fortunes of Ashok Leyland, just like the rest of the commercial vehicle industry, were inextricably linked to the rhythmic but volatile cycles of the truck and bus markets. In an industry where “seasonality” is often a euphemism for unpredictable downturns, the company’s Power Solution Business (PSB), the unit responsible for its engines, was initially conceived as a tactical hedge to utilize excess manufacturing capacity. However, what began as a strategy to mitigate the peaks and troughs of the Medium and Heavy Commercial Vehicle (M&HCV) segment has evolved into a formidable, standalone business vertical.
Olectra Greentech Commences Phase-I Operations at Hyderabad EV Manufacturing Facility
Olectra Greentech Limited declared December 31, 2025, as the Commercial Operation Date (COD) for Phase-I of its greenfield electric vehicle manufacturing facility located at Seetharampur, Hyderabad, Telangana, with an annual per-shift production capacity of 2,500 buses, the company informed the stock exchanges on January 1, 2026.
The Phase-I capacity achievement marks a significant milestone in the company’s expansion plans, representing 50 percent of the facility’s planned per-shift annual capacity of 5,000 buses per annum. The Seetharampur facility has been established as a dedicated manufacturing unit for electric buses, reflecting the company’s focus on sustainable transportation solutions.
Anti-Dumping Duties on Chinese Cranes May Lift the Game for ACE
For years, the Indian market for high-capacity truck and crawler cranes has been dominated by Chinese manufacturers, helped by cheaper domestic steel, state support, and soft financing that left them 30–40% cheaper than Indian rivals. The Central Government now proposes anti-dumping duties of roughly 35–40% on Chinese cranes, covering truck cranes up to 160 tonnes and crawler cranes up to 260 tonnes, in a move that would significantly narrow this price gap. ACE sees the measure as more than a simple tariff adjustment.
Endurance Technologies Reports Cybersecurity Incident, Operations Unaffected
Endurance Technologies Ltd, a leading automotive component manufacturer, faced a cybersecurity incident last month. The company, headquartered in Pune, detected the breach on December 23 and responded by immediately isolating the compromised systems. Remediation measures were promptly initiated to contain and mitigate the incident’s impact, according to an exchange filing.
The company has not disclosed specific details about the nature of the breach, the systems affected, or potential data compromise, citing the ongoing investigation.
Neolite ZKW Lightings Files ₹600 Crore IPO with SEBI
Neolite ZKW Lightings Limited has submitted its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering aggregating up to ₹600 crore. The company manufactures and supplies automotive lighting products and components to original equipment manufacturers globally.
The IPO comprises a fresh issue of equity shares worth ₹400 crore and an offer for sale of ₹200 crore by existing shareholders. The selling shareholders include founder Rajesh Jain (₹114 crore), Neokraft Global Private Limited (₹40 crore), and ZKW Group GmbH (₹46 crore). The company may also consider a pre-IPO placement of up to ₹75 crore.
“AI Can Turn Blue Collar Into Gold”: Anand Mahindra
Anand Mahindra, Chairman of the Mahindra Group, addressed the Mahindra community in his annual New Year message, highlighting the conglomerate’s market performance and outlining strategic initiatives in education and skills development.
Sales Analysis
Auto Sector Recap 2025 | Top 10 Trends
As 2025 draws to a close, Mugdha Mishra sits down with auto industry expert Arun Malhotra to unpack the 10 key developments that shaped the Indian auto sector this year. From growth driven by GST reforms and the Make in India push to concerns around E20-blended petrol and shifts in industry leadership, the conversation takes a clear-eyed look at the trends, challenges and turning points that defined 2025.
Hyundai Motor India Records 58,702 Unit Sales in December 2025
Toyota Kirloskar Motor Records Highest Calendar Year Sales in 2025
Kia India Records 105% December Growth Despite Month-on-Month Decline
JSW MG Motor India Reports 19% Growth in 2025 with 70,554 Units Sold
PV Industry Ends 2025 on High, Crosses 4 lakh Sales for First Time in December
India’s mass passenger vehicle (PV) industry 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.
Honda Cars India Reports 3.6% Domestic Sales Growth in December 2025
Skoda Auto India Records 107% Growth in 2025, Sells 72,665 Units
Renault India Reports 33.4% Sales Growth in December 2025
Audi India Reports 4,510 Unit Sales in 2025, Eyes Growth Through New Launches
Force Motors Posts Consecutive Monthly Growth in November and December 2025
Maruti Suzuki Sees 6-7% Market Growth in 2026 as Demand Momentum Holds
Maruti Suzuki expects India’s passenger vehicle market to grow by 6–7% in 2026, supported by improving affordability, stable macro conditions, and sustained consumer demand, even as supply-side constraints continue to shape production planning.
Speaking at the company’s December sales briefing, Partho Banerjee, senior executive officer – marketing and sales, said the demand momentum seen in the second half of 2025 is expected to carry into the new year, aided by policy support and easing cost pressures.
Maruti Suzuki Logs 286,000 December Retail Sales as Inventory Drops to Three Days
Maruti Suzuki 2025 Sales Up 3% at 1.80 Million, GST Cut Powers Growth in Last Quarter
Maruti Suzuki Exports 395,000 Vehicles in 2025, Retains Top Position
Dzire Defies SUV Wave to Emerge as India’s Best-Selling Car in 2025
Maruti Suzuki’s Dzire emerged as India’s best-selling car in calendar year 2025, even as sport utility vehicles tightened their grip on the market, accounting for a record 55.3% of total passenger vehicle sales.
The compact sedan sold around 214,000 units during the year, retaining its leadership position despite a sharp shift in consumer preference toward SUVs. The milestone underlines the continued relevance of value-led sedans in a market increasingly dominated by higher-riding vehicles.
Speaking at the company’s December sales briefing, Partho Banerjee, senior executive officer – marketing and sales, said the Dzire’s performance demonstrated that strong product fundamentals continue to matter even in an SUV-heavy market.
Maruti Suzuki may Continue Tactical Pricing as Entry-car Demand Revives
Maruti Suzuki SUV Contribution Rises to 30% as Grand Vitara-based Victoris Drives Demand
Mahindra SUV Sales Cross 600,000 for First Time in CY2025
With 50,946 SUVs dispatched to dealers (wholesales) in December, Mahindra & Mahindra has capped a stellar year, surpassing wholesales of 600,000 vehicles for the first time in a calendar year. The automaker’s show of strength in 2025 sees it rise two ranks in the overall passenger vehicle segment to become the new No. 2 OEM after Maruti Suzuki.
The SUV manufacturer is also expected to achieve the 600,000 milestone in FY2026. In the first nine months of the current fiscal, M&M has registered wholesales of 476,476 units, up 18% YoY. That leaves the 600,000 milestone for FY2026 123,524 units away, with three months left to go in the current fiscal.
Mahindra Records 25% Year-on-Year Sales Growth in December
Tata Motors Sells 578,771 Cars and SUVs in CY2025, EV Sales up 18% at 81,125 Units
Tata Motors has closed CY2025 with its highest annual sales of passenger vehicles for the fifth year in a row, reflecting its sustained growth since CY2022. Last year, the car and SUV manufacturer dispatched 578,771 passenger vehicles, up 3% YoY (CY2024: 562,468 units). This gives the company No. 3 podium position in the PV market, after Maruti Suzuki (1.80 million units) and Mahindra & Mahindra (625,603 units), and ahead of Hyundai Motor India (571,878 units).
Tata Motors Climbs to No. 2 in Q3 FY26, Powered by Nexon and Early Sierra Traction
Hyundai Creta Records Highest Annual Sales in 2025
Electric Car and SUV Sales Hit Highest Level in CY2025: 176,500 Units
The Indian electric passenger vehicle segment, in tandem with the electric two- and three-wheeler segments, has registered its best-ever calendar year retails in CY2025. At 176,538 units, the year-on-year increase is a massive 77%.
Proof of the growing demand for zero-emission cars, SUVs and MPVs is seen on Indian roads as PV buyers prefer to put their money on a wallet-friendly EV, despite the higher initial price compared to their petrol or diesel brethren. Between 2015 and 2024, over 425,000 electric PVs have been sold in India.
Hero MotoCorp December Sales Rise 40%, Following Festive-Led Growth in November
Hero MotoCorp reported a 40 percent year-on-year increase in total two-wheeler dispatches in December 2025, continuing the growth momentum seen in November, though overall volumes declined on a month-on-month basis after the festive season.
The company dispatched 456,479 units in December, compared with 324,906 units in December 2024, and above market expectations of around 400,000 units. This compares with November 2025 sales of over 600,000 units, when dispatches rose 31 percent year-on-year, supported by festive demand and strong retail traction.
Bajaj Auto Reports 14% Growth in December 2025 Sales
TVS Motor Records Highest Quarterly Sales Despite December Decline from November
Royal Enfield Reports 30% Sales Growth in December 2025
Suzuki Motorcycle India Reports 26% Sales Growth in December 2025
Record 1.28 Million e-2Ws Sold in 2025, TVS, Bajaj, Ather and Hero Clock Best-Ever Retails
If India’s electric vehicle industry achieved a new annual retail sales record of 2.27 million units in CY2025, having crossed the 2 million milestone for the first time in November, it’s thanks to the big volumes provided by the most affordable sub-segment – electric two-wheelers.
Of the total 22,70,425 EVs sold across four zero-emission vehicle sub-segments in India in 2025, electric scooters, motorcycles and mopeds accounted for nearly 1.28 million units (up 11% YoY) or 56 percent.
Tata Motors Commercial Vehicle Sales Rise 25% in December 2025
Tata Motors recorded commercial vehicle sales of 42,508 units in December 2025, compared to 33,875 units in December 2024, marking a 25% year-on-year increase. This follows November’s performance of 35,539 units, which was 29% higher than the 27,636 units sold in November 2024. December sales represented a 19.6% increase over November.
For the third quarter of fiscal year 2026 (October-December), the company sold 1,15,577 units, up 21% from 95,770 units in the same quarter last year. The quarterly figure also reflected 22% sequential growth over Q2FY26.
Ashok Leyland Reports 27% Growth in December Sales
Mahindra Reports 37% Growth in Domestic Tractor Sales for December 2025
Mahindra & Mahindra Ltd.’s Farm Equipment Business recorded domestic tractor sales of 30,210 units in December 2025, representing a 37% increase over the 22,019 units sold in December 2024.
Total tractor sales, including exports, reached 31,859 units during the month, compared to 22,943 units in the corresponding period last year. Export volumes stood at 1,649 units, marking a 78% increase year-on-year.
Escorts Kubota Reports 38% Growth in December Tractor Sales
Insights & Interpretations
Tesla Uncrowned
The electric vehicle story is often told as a race for sales, market share, or technological firsts. But that framing misses the deeper shift now underway. What we are witnessing is not the arrival of electric mobility, but a change in what leadership in this industry truly means. Tesla once turned electric cars into belief, aspiration, and cultural inevitability. Today, the centre of gravity is moving from narrative power to industrial depth, from charisma to systems, from disruption to execution. This piece is about that transition and about what happens when a story-led revolution collides with the hard mathematics of scale, manufacturing, and long-term dominance.
Accelerating Battery Manufacturing Ecosystem in India
India’s energy future is increasingly reliant on advanced battery technologies, which are indispensable for powering electric vehicles (EVs) and facilitating the storage of renewable energy from burgeoning solar and wind sources. This national drive is fuelled by rapidly rising energy demand and a decisive governmental shift towards clean technologies.
India has set ambitious targets, including achieving 30% EV sales penetration and reducing projected carbon emissions by 1 billion tonnes by 2030; and committing to net-zero emissions by 2070. These objectives underscore a profound strategic commitment to sustainable mobility and energy independence.
The article covers current challenges associated with indigenous development of raw materials, battery cell manufacturing, equipment/ machinery development so to meet the growing demand for energy storage systems both for the electric mobility and stationary storage applications.
Long Reads
Autocar Professional Person of the Year 2025: Sudarshan Venu
The global two-wheeler industry is undergoing a rare shake-up. TVS Motor has overtaken Yamaha and now ranks among the world’s top three two-wheeler makers by volume. Besides becoming the second Indian brand after Hero MotoCorp to break into the top three, the Chennai-based automaker has claimed the top spot in India’s electric two-wheeler market.
It also surpassed Hero MotoCorp in revenues in the first half of the ongoing financial year. TVS’ rise is the result of years of steady market-share gains under the leadership of its 36-year-old chairman and managing director—and Autocar Professional’s 2025 Person of the Year—Sudarshan Venu.
India Reclaims Growth Momentum as Policy Support and New Models Lift Auto Market
After a sluggish start to the year, India’s passenger vehicle market regained momentum in the last quarter of 2025, driven by GST 2.0, falling interest rates, and new model launches at attractive prices, reviving demand.
While growth remained moderate rather than spectacular in the first 9 months due to a high base and a slowing economy, the industry clawed back lost ground and closed the year with volumes estimated at around 4.58 million units, making India the second-fastest-growing large car market globally after China.
The recovery came amid slowing global demand and persistent geopolitical uncertainty. Yet, unlike several mature markets that saw stagnation or contraction, India managed to sustain forward momentum, aided by a combination of price correction beyond the GST cut, portfolio expansion, and improving consumer sentiment around the festive season.
India’s CV Market Roars Back in 2025 on Policy Reforms and Infra Boost
The Indian commercial vehicle (CV) market, a bellwether for the nation’s economic metabolism, has finally exited a prolonged period of deceleration, showing robust signs of recovery in the latter half of calendar year 2025. After a sluggish start marked by tepid volume growth, the industry found significant traction following key policy interventions and traditional seasonal strength.