India's Passenger Vehicle Sales Hit Record High in 2025 Supported by Tax Cuts and Demand

India's passenger vehicle sales reached a record 44.9 lakh units in 2025, growing 5% year-on-year, driven by a 27% surge in December and strong festive quarter demand, according to SIAM data. The growth was supported by GST rate reductions, income tax relief, and lower financing costs. Commercial vehicles and three-wheelers also posted highest-ever annual sales, while two-wheelers recorded their second-best year. Exports across major vehicle categories rose significantly, reflecting robust industry performance.