The Indian passenger vehicle (PV) industry closed the calendar year 2025 on a powerful note, with December dispatches to dealers showing robust, double-digit growth for most major manufacturers. The momentum was fueled by a combination of sustained demand for utility vehicles, attractive consumer discounts, a positive sentiment shift following GST rate rationalisation, and a strong marriage season.
Top Automakers Report Strong Dispatch Numbers
As per regulatory filings made on Thursday, January 1, three of the four listed car manufacturers posted impressive year-on-year growth figures for December 2025.
Maruti Suzuki India, the country's largest carmaker, reported a significant 22.21% increase in domestic sales, dispatching 2,17,854 units compared to 1,30,117 units in December 2024. A key driver was the company's utility vehicle portfolio, including models like Brezza, Grand Vitara, and Fronx, which saw sales jump by 32.64% to 73,818 units. Notably, sales in the small car segment, which had been subdued, also picked up sharply to 14,225 units from 7,418 units a year ago, aided by GST revisions making these entry-level models more affordable.
Mahindra & Mahindra (M&M) continued its strong run in the SUV segment, dispatching 50,946 units domestically. This marks a substantial 23% growth over the 41,424 units sold in the same month last year, helping the company retain its position as the second-largest PV maker in the Indian market.
Tata Motors also recorded healthy growth, with passenger vehicle dispatches rising by 13.1% to 50,046 units from 44,230 units in December 2024. The company's electric vehicle segment maintained its strong trajectory, with sales growing 24.2% to 6,906 units.
Hyundai Bucks the Trend, Brokers See Sustained Recovery
In contrast to its peers, Hyundai Motor India saw a sequential dip in dispatches, which fell to 42,416 units in December from 50,340 units in November. However, on a year-on-year basis, the company still registered a 6.6% growth.
Domestic brokerage firm Motilal Oswal, in a recent note, observed that the demand recovery following GST rationalisation has sustained beyond the festive season. The brokerage highlighted a notable pickup in demand for entry-level vehicles, both two-wheelers and passenger cars. It also pointed out that strong wholesale dispatches in December were matched by healthy retail sales across most segments, leading original equipment manufacturers (OEMs) to end 2025 with lean inventory levels.
This lean inventory position, the note added, is likely to help OEMs sustain sales volume momentum in the fourth quarter of the 2025-26 financial year. As demand recovers further, discounts in the passenger vehicle segment are expected to gradually reduce.
Brokerage Picks and Market Outlook
Motilal Oswal has identified Maruti Suzuki as its top pick in the PV category, citing the company's new launches and current export momentum as key drivers for future earnings growth. The brokerage also favours Mahindra & Mahindra, supported by an improving tractor demand cycle and consistent growth in its utility vehicle business. In the two-wheeler segment, the firm holds a positive view on TVS Motor Company.
The collective performance in December underscores a resilient and recovering automotive market in India. Factors like GST rate cuts, which made small cars more accessible, and the unrelenting consumer preference for feature-packed compact SUVs have provided a dual-engine boost for growth, setting an optimistic tone for the new year.
