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India Auto Sales Hit Record in 2025 After Late-Year Policy Boost

Policy tailwinds from GST 2.0 plus lower borrowing costs drove a late‑2025 rebound, setting up mid‑single‑digit growth in 2026.

Overview

  • Passenger vehicle wholesales reached an all‑time high of about 4.55 million units in 2025, up roughly 6% on industry estimates.
  • Maruti Suzuki posted its highest‑ever annual wholesales at 2,351,139 units, including record exports of 395,648, with December sales totaling 217,854.
  • Mahindra reported 86,090 vehicles in December, including 50,946 domestic SUVs, and said 2025 was its best year yet for SUVs and LCVs.
  • SUVs expanded to 55.8% of passenger vehicle sales, with Hyundai’s Creta alone exceeding 200,000 units for the year.
  • Industry rankings shifted as Mahindra and Tata overtook Hyundai by full‑year volume, while executives projected 6–7% growth in 2026 supported by tax reforms and rate cuts.