The Indian automobile industry has concluded the calendar year 2025 on a resolutely positive note, demonstrating a firm and broad-based recovery across major segments. Data released by the Society of Indian Automobile Manufacturers (SIAM) for December 2025 reveals healthy growth in passenger vehicles, two-wheelers, and commercial vehicles, signaling robust consumer demand and a resilient economic backdrop.
December 2025: A Month of Widespread Growth
The final month of the year served as a powerful testament to the industry's momentum. According to the latest SIAM figures, passenger vehicle wholesales witnessed a significant increase of 6.37% in December 2025, reaching 285,429 units compared to 268,337 units dispatched in the same month of the previous year. This growth was not confined to a single category but was supported by a strong performance in the utility vehicle segment, which continues to capture significant market share.
The two-wheeler sector, a critical indicator of mass-market sentiment and rural demand, also posted encouraging numbers. Sales in this category grew by 4.26% year-on-year, with dispatches rising to 1,128,757 units in December 2025 from 1,082,598 units a year earlier. This rebound is particularly noteworthy as it suggests a recovery in the crucial entry-level and rural markets.
Commercial Vehicles and Three-Wheelers Join the Rally
The positive trend extended to the commercial vehicle (CV) segment, which is often viewed as a barometer of economic activity. Commercial vehicle sales surged by an impressive 11.68% during the month, climbing to 84,966 units from 76,081 units in December 2024. This growth underscores heightened activity in infrastructure, construction, and goods transportation sectors.
Furthermore, the three-wheeler category experienced an extraordinary boom. Sales in this segment skyrocketed by 82.32% to 58,995 units, up from 32,352 units in the corresponding period last year. This explosive growth highlights increased demand for last-mile connectivity and passenger mobility solutions.
Quarterly and Annual Performance Highlights
The strength seen in December contributed to a solid performance for the entire October-December quarter of the 2025-26 fiscal year. Passenger vehicle sales for the quarter grew by 5.15%, while two-wheeler sales saw a more modest increase of 1.33%. The commercial vehicle segment, however, registered a slight contraction of 0.54% for the quarter, indicating some variability in demand cycles.
Vinod Aggarwal, President of SIAM, provided context to these numbers. He stated that the industry's growth is being driven by a combination of factors, including positive consumer sentiment, new model launches, and a stable supply chain for critical components like semiconductors. Aggarwal emphasized that the industry is now operating at a healthy pace, with production lines running smoothly to meet the sustained demand.
Challenges and the Road Ahead
Despite the celebratory data, industry leaders remain cautiously optimistic. They point to persistent challenges that could influence future growth trajectories. Key among these are high commodity prices, inflationary pressures affecting input costs, and the geopolitical climate impacting global trade. Managing these headwinds will be crucial for maintaining profitability and growth momentum.
The industry's focus is now shifting towards sustainability and innovation. Aggarwal noted that while internal combustion engine vehicles continue to dominate sales, the electric vehicle (EV) portfolio is expanding rapidly. Automakers are investing heavily in new technologies and cleaner fuel alternatives to align with both consumer preferences and stringent government regulations on emissions.
The broad-based growth across all vehicle categories in December 2025 provides a strong foundation for the Indian auto industry as it enters the new calendar year. With demand holding steady and supply-side constraints easing, the sector is poised for a period of stable, albeit carefully managed, expansion in the months to come.
