Indian Auto Sales Hit Record Highs in 2025 Driven by Policy Support and Festive Demand

India's automotive sector concluded 2025 with record-breaking sales across most segments, driven by improved affordability from GST rate reductions, income tax relief, and lower financing costs. Passenger vehicle sales reached an all-time high of 4.49 million units, a 5% year-on-year increase. December 2025 saw a significant surge, with PV sales up 27% and two-wheeler sales up 39%. Utility vehicles were a key growth driver for passenger vehicles. Other segments like commercial vehicles and three-wheelers also reported strong growth, with CV and three-wheelers achieving their highest-ever annual sales.