Overview
- Passenger vehicles grew 9.7% in 2025 to about 4.47 million units, two-wheelers rose 7.24% to over 20.29 million, tractors climbed 11.5% to roughly 996,000, commercial vehicles increased 6.71%, and three-wheelers advanced 7.21%.
- December retail reached about 2.03 million units, with passenger vehicles up 26.64%, commercial vehicles up 24.60%, three-wheelers up 36.10%, and two-wheelers up 9.5% on stronger offers and improved availability.
- Electric vehicles exceeded 60% share in three-wheelers, reached 6.31% penetration in two-wheelers, and nearly 4% in passenger vehicles, while CNG gained share in both PVs and CVs.
- FADA described a two-phase year, noting muted conditions through August from cautious spending and selective financing before a sustained September–December upshift.
- Dealer surveys show more than 70% expect growth in January 2026 and nearly 75% anticipate expansion over the next three months, supported by seasonal buying and better rural cash flows.