India's automotive sector achieved record sales in 2025, with two-wheeler registrations reaching 20.2 million units and passenger vehicle registrations hitting 4.38 million. This marks the first time two-wheeler sales have surpassed 20 million. Analysts attribute this surge to recent GST rate reductions on vehicles, which stimulated demand across segments, particularly for entry-level models. The Nifty Auto index also saw significant growth, outperforming the broader market.