India's Auto Sector Sees Record Sales, 24% Export Growth and Rising EV Adoption in 2025

India's automobile sector showed strong growth in 2025, with passenger vehicle volumes reaching record highs and exports rising 24 percent to over 63 lakh units, driven by demand in markets like the Middle East, Africa, and Latin America. Luxury car sales grew, supported by electric vehicle adoption aided by GST benefits. Southern states led electric passenger vehicle registrations, reflecting urban density and infrastructure development. Industry forecasts for 2026 remain optimistic amid festive demand, GST rationalisation, and improving rural sentiment.