India's passenger vehicle industry has driven past a major milestone, achieving its highest-ever annual wholesales in the calendar year 2025. According to industry estimates, total dispatches from manufacturers to dealers reached a record 45.5 lakh units, marking a growth of nearly 6 per cent over the previous year. This performance surpassed the previous peak of 43.05 lakh units set in 2024.
Policy Reforms Fuel Second-Half Surge
Industry executives highlighted that the year witnessed a tale of two halves. A sluggish start was overcome by strong policy tailwinds in the latter part of 2025. Partho Banerjee, Senior Executive Officer for Marketing & Sales at Maruti Suzuki India, explained the turnaround. "We need to split 2025 into two halves -- pre GST and the post GST," he stated. He credited the combination of GST reduction on certain vehicles, income tax relief on income up to Rs 12 lakh, and repo rate cuts
Market Leaders Drive Growth and a Ranking Shuffle
The record numbers were powered by historic annual sales from several key players. Market leader Maruti Suzuki India posted its highest-ever wholesales of 18.44 lakh units, beating its 2024 record of 17.90 lakh units.
A significant shift occurred in the competitive rankings. Mahindra & Mahindra and Tata Motors Passenger Vehicles leapfrogged Hyundai Motor India to become the second- and third-largest PV makers by volume, respectively, pushing the South Korean automaker to fourth place.
Tata Motors celebrated its fifth consecutive year of record-breaking sales, selling 5,87,218 units, which included its highest-ever electric vehicle (EV) volume of 81,125 units in a calendar year. Managing Director Shailesh Chandra noted the steady progress and momentum from GST 2.0 reforms.
Mahindra & Mahindra also closed the year on a high note. CEO of its Automotive Division, Nalinikanth Gollagunta, announced the company clocked its highest-ever volumes in both SUVs and light commercial vehicles (over 3.5T).
SUV Dominance and Strong Performers
The consumer preference for Sports Utility Vehicles (SUVs) strengthened further in 2025. SUVs accounted for 55.8 per cent of total passenger vehicle sales, up from 53.8 per cent in 2024. This trend persisted even as small cars showed early signs of recovery following the GST reforms.
Other automakers also reported stellar performances. Toyota Kirloskar Motor recorded its best-ever calendar year sales of 3,88,801 units, a 19% increase from 2024. Skoda Auto India more than doubled its sales to a record 72,665 units. JSW MG Motor India posted a 19% year-on-year growth, selling 70,554 units.
Hyundai Motor India, while moving down in the volume rankings, reported a robust 6.6% year-on-year growth in total sales for December 2025, driven by the positive momentum from GST 2.0 reforms.
Optimistic Road Ahead
The outlook for the Indian automotive industry remains positive. Maruti Suzuki's Partho Banerjee expressed confidence that the current tailwinds would continue. "If in the next year the monsoon is good, there is no reason why the auto industry should not be growing at a rate of 6–7 per cent growth," he said, setting an optimistic tone for 2026.
