Passenger vehicle retail sales in India reached a record 4.37 million units in 2025, an 8.2% year-on-year increase. This growth, exceeding industry expectations, was significantly boosted by a mid-year Goods and Services Tax (GST) cut on small cars, which improved affordability and revived demand, particularly during the festive season. Maruti Suzuki led the market, selling 1.76 million vehicles. The recovery followed a slower first half of the year, which was impacted by higher interest rates and elevated prices.