Passenger vehicle (PV) wholesale dispatches from manufacturers to dealers recorded strong double-digit growth in December, signalling sustained demand momentum in the domestic auto market, triggered by GST cuts announced in September. Growth during the month was further supported by year-end discounts offered by companies, with dispatches rising 26.2% year-on-year (YoY) to 407,497 units in December 2025, compared with 322,965 units in December 2024, according to industry data.
Industry estimates suggest the sector clocked a new wholesale high in calendar year 2025, with volumes rising 5.7% to around 4.55 million units, compared with 4.31 million units in CY24.
Most carmakers, including Maruti Suzuki India, Mahindra & Mahindra, Tata Motors Passenger Vehicles and Toyota Kirloskar Motor, posted healthy growth, with SUVs continuing to enjoy strong traction. SUV penetration rose to 55.8% of total PVs sold in India from 53.8% in 2024, even as small cars showed signs of recovery in the GST 2.0 era.
Maruti Suzuki India recorded its best-ever December, with sales rising 37% to 178,646 units from 130,117 units a year ago. The Japanese carmaker also clocked its highest-ever wholesales of 1.84 million units in 2025, surpassing its previous record of 1.79 million units registered in 2024, Partho Banerjee, Senior Executive Officer, Marketing & Sales, said.
He said that apart from the GST reduction, growth was also driven by income tax relief on income of up to ₹12 lakh and repo rate cuts, which helped the auto industry’s performance in 2025.
“We need to split 2025 into two halves, a pre GST and the post GST. it is a combination of these things which has really pepped up the market from the month of October onwards,” Banerjee said.
Policy-Led Recovery
An FE analysis of retail data shows that during the first eight months from January to August, average monthly PV retail sales stood at 345,000 units, reflecting growth of just 5.1% over the same period last year. This rose to 399,000 units per month in the September–December period, with growth accelerating to 14% after the GST cut, underscoring the policy’s role in lifting demand.
New Pecking Order
Mahindra also posted a 23% rise, with sales increasing to 50,946 units in December 2025 from 41,434 units a year earlier. Nalinikanth Gollagunta, CEO, Automotive Division, M&M, said, “December was another standout month as we continued our growth trajectory with 22% growth YoY. At the same time, our retail sales significantly exceeded wholesales, driving dealer inventory down to ~18 days, and underscoring our strategic focus on demand-led growth and prudent channel health management.”
Tata Motors’ sales rose 13% to 50,046 units from 44,230 units in December 2024. Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles, said, “CY25 saw steady progress for the PV industry powered by a growing preference for SUVs and accelerating adoption of cleaner, emission-friendly powertrains. For Tata Motors, it was the fifth consecutive year of record-breaking”
Hyundai was the worst performer in the list, losing ground and slipping to fourth place after being overtaken by Mahindra and Tata Motors. Hyundai reported flat sales in December.
SUV-focused automakers Toyota and Kia also saw healthy growth. Toyota’s sales rose 37% to 34,157 units in December 2025 from 24,887 units a year ago, while Kia’s sales more than doubled to 18,659 units in December.
On the outlook for 2026, Maruti’s Banerjee said, “In times to come, my take is that the tailwinds which are there right now will continue, and if in the next year the monsoon is good, there is no reason why the auto industry should not be growing at a rate of 6-7% growth.”
Tata’s Chandra said, “With deliveries of recently introduced products commencing in Q4 and an exciting pipeline of launches and innovations on the anvil, Tata Motors is well poised to accelerate its growth trajectory in FY26.”