Archive · 30 Dec 2025
Auto Sector Sees Record Growth in 2025
In 2025, India saw a big increase in car sales, reaching a record 4.37 million units.
This growth happened because the government lowered taxes on small cars, making them cheaper.
People started buying more cars, especially during the festive season.
Maruti Suzuki sold the most cars, but Mahindra & Mahindra had the biggest increase in sales.
Experts think the market will keep growing, but it depends on things like people's income and how easy it is to get loans.
Passenger vehicle retail sales in India hit a record 4.37 million units in 2025, growing 8.2% year-on-year.
GST rate cuts in mid-2025 triggered a sharp rebound in demand, especially during the festive season.
Maruti Suzuki maintained its leadership with a 40.4% market share, while Mahindra & Mahindra overtook Hyundai to secure the second position.
SUVs and compact utility vehicles continued to outperform, with Tata Motors closely following the top three.
Dealers are cautiously optimistic about growth in the next three months, depending on income growth and financing conditions.
- Who
- Automakers and consumers in India
- What
- Record passenger vehicle retail sales in 2025
- When
- Calendar year 2025
- Where
- India
- Why
- Due to GST rate cuts and improved affordability
- Total PV retail sales in 2025
- 4.37 million units
- Year-on-year growth
- 8.2%
- Maruti Suzuki market share
- 40.4%
- Mahindra & Mahindra market share
- 13.3%
- Hyundai market share
- 12.7%
- Tata Motors market share
- 12.5%
- GST rate for small cars
- Reduced from 28% to 18%
- GST rate for larger cars and SUVs
- Increased to 40%
