Archive · 13 Jan 2026
India's Auto Sector Grows in 2025
India's auto sector had a great year in 2025, with lots of cars, bikes, and trucks sold.
The industry is happy and thinks 2026 will be good too.
They sold more vehicles than ever before, and even sent more cars to other countries.
The government's policies, like lower taxes, helped make vehicles more affordable.
The industry is also watching the world to make sure they can keep making and selling vehicles without problems.
Some companies that make parts for these vehicles are also doing well and plan to grow more in the future.
India's auto retail sales reached 28.16 million units in 2025, a 7.7% year-on-year growth.
Passenger vehicles, commercial vehicles, and three-wheelers recorded their highest-ever sales in 2025.
Two-wheelers posted the second-highest sales ever in a calendar year, with a 5% year-on-year growth.
Exports grew by double digits across all vehicle segments in 2025, with a 21% year-on-year increase in December 2025.
The industry expects positive momentum to continue into 2026, supported by stable macroeconomic conditions and policy support.
- Who
- Indian automobile industry, including SIAM and auto ancillary companies
- What
- Significant growth in auto retail sales and positive industry outlook for 2026
- When
- 2025 and 2026
- Where
- India
- Why
- Stable macroeconomic conditions, improving affordability, and policy support
- Auto Retail Sales 2025
- 28.16 million units
- Year-on-Year Growth 2025
- 7.7%
- Passenger Vehicle Sales 2025
- 4,489,717 units
- Two-Wheeler Sales 2025
- 20,500,639 units
- Three-Wheeler Sales 2025
- 788,421 units
- Commercial Vehicle Sales 2025
- 1,027,877 units
- Total Auto Sales 2025
- 26,806,670 units
- Auto Exports December 2025
- 578,887 units
Sources
Four auto ancillary stocks in focus amid sector tailwinds
Indian auto industry outlook positive for 2026 after record 2025 sales: SIAM
Ficci VP: Here are four budget imperatives for India to build a future-ready economy
