New Delhi: India’s automobile industry delivered a record performance in the October–December quarter of FY2025-26 and the calendar year 2025, while also closing December on a strong note, supported by policy-led affordability, festive demand and easing financing conditions, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.
Passenger vehicle sales rose 20.6 per cent year-on-year to 12.76 lakh units in Q3FY26, marking the segment’s highest-ever third-quarter performance. For the full calendar year 2025, passenger vehicle sales touched a record 44.90 lakh units, up 5.0 per cent from 2024.
On the other hand, passenger vehicle sales in December 2025 stood at 3,99,216 units, registering a sharp 26.8 per cent increase compared with December 2024.
Tailwinds for the industry
SIAM said the growth was driven by improved affordability following GST rate reductions, personal income tax relief, successive repo rate cuts by the Reserve Bank of India and renewed consumer optimism during the festive season.
Passenger vehicle exports also touched record levels, rising 11.7 per cent to 2.25 lakh units in Q3FY26 and 16.0 per cent to 8.63 lakh units in the January–December 2025 period, supported by steady demand from the Middle East, Africa and Latin America.
Two-wheelers cross 20 million units
Two-wheeler sales rose 16.9 per cent year-on-year to a record 5.70 million units in Q3FY26. For the calendar year 2025, the segment crossed the 20-million mark with sales of 20.50 million units, up 4.9 per cent from the previous year.
In December 2025, two-wheeler sales jumped 39.4 per cent to 15,41,036 units, led by strong growth in scooters and motorcycles, reflecting robust urban demand during the festive period.
Exports of two-wheelers rose 24.3 per cent in Q3FY26 and 24.2 per cent for the full calendar year, driven by improving conditions in African markets and steady demand in South Asia.
Three-wheelers and commercial vehicles post robust growth
Three-wheeler sales increased 14.0 per cent year-on-year to 2.15 lakh units in Q3FY26. For the calendar year 2025, the segment recorded its highest-ever sales of 7.88 lakh units, growing 8.2 per cent.
In December 2025, three-wheeler sales stood at 61,924 units, up 17.4 per cent year on year, supported by higher passenger mobility and improved financing options.
Commercial vehicle sales rose 21.5 per cent year-on-year to 2.90 lakh units in Q3FY26, the highest-ever for a third quarter. Calendar year sales reached a record 10.28 lakh units, up 7.7 per cent.
Outlook for Q4FY26 remains positive
Commenting on the performance, SIAM President Shailesh Chandra said 2025 was a landmark year for the industry, with broad-based growth across segments and double-digit export growth.
SIAM Director General Rajesh Menon said the industry enters Q4FY26 with firm momentum and expects demand to remain steady, supported by year-end sales, healthy booking pipelines and the full transmission of interest rate cuts.
While remaining watchful of geopolitical developments, SIAM said the industry expects FY2025-26 to close on a positive growth trajectory, underpinned by stable macro-economic conditions and continued policy support.
| Category | Domestic Sales (In Nos.) | ||
| Segment | December | ||
| 2024 | 2025 | % Change | |
| Total Passenger Vehicles | 3,14,934 | 3,99,216 | 26.8% |
| Total Three Wheelers | 52,733 | 61,924 | 17.4% |
| Total Two Wheelers | 11,05,565 | 15,41,036 | 39.4% |
| Quadricycle | 5 | – | – |
