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India’s Auto Retail Rebounds in 2025 With 7.71% Growth as EV Uptake Accelerates

Dealers credit a September GST 2.0 tax reset for the second-half turnaround that improved affordability.

Overview

  • Total retail reached about 28.16 million units in 2025, up 7.71% year on year, with passenger vehicles up 9.7%, two-wheelers up 7.24%, commercial vehicles up 6.71% and tractors up 11.52%, FADA reported.
  • December delivered a strong finish at roughly 2.03 million units, up 14.63% year on year, led by a 26.64% jump in passenger vehicles on festive spillover, year-end offers and pre-buying ahead of expected price hikes.
  • EV retail rose 16.37% to 2,270,107 units, with electric passenger cars up 77% to 176,817 units and EVs taking a 60.9% share of three-wheeler sales.
  • Rural passenger-vehicle demand outpaced urban markets in 2025, growing about 12% versus roughly 8% in cities, with rural PV sales up 32.4% in December.
  • EV competition intensified as Tata Motors led with 70,004 electric cars but saw share ease to 39.6%, JSW MG Motor rose to 51,387 units and Mahindra jumped to 33,513, while about 75% of dealers expect growth in early 2026.