December auto registrations rise 9% YoY as four-wheelers outpace two-wheelers

Domestic automobile demand closed December 2025 on a resilient note, with VAHAN registration data indicating broad-based growth across most segments, even as two-wheelers continued to lag behind. Registrations for the December 1–28 period rose 9% year-on-year, underlining steady consumer and fleet demand toward the end of the calendar year.

The divergence between four-wheelers and two-wheelers became sharper during the month. Passenger vehicles (PVs), commercial vehicles (CVs) and three-wheelers delivered strong double-digit growth, while the two-wheeler segment posted only modest gains, reflecting a still-gradual recovery in rural and mass-market consumption.

Four-Wheelers Drive Growth

Passenger vehicle registrations are estimated to have grown around 15% year-on-year, supported by sustained demand for SUVs, improved supply chains and year-end buying activity. Automakers are expected to report high single-digit to low double-digit growth, continuing the momentum seen through much of 2025.

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Commercial vehicles also remained a key growth engine. CV registrations are likely to rise close to 16%, driven by infrastructure spending, healthy freight movement and replacement demand. The segment has benefited from stable economic activity and improved fleet utilisation, keeping demand buoyant across both medium and heavy commercial vehicles.

Three-wheelers emerged as the standout performer for the month. Registrations in the segment are estimated to have surged nearly 30% year-on-year, aided by strong demand from last-mile connectivity, passenger mobility and the expanding e-rickshaw ecosystem in urban and semi-urban markets.

Two-Wheelers Continue to Lag

In contrast, two-wheeler registrations are expected to grow just 4% in December, highlighting the continued softness in entry-level commuter demand. While premium motorcycles have shown relative resilience, mass-market recovery remains patchy, particularly in rural regions where discretionary spending is yet to rebound decisively.

Performance within the segment remained uneven. Eicher Motors and TVS Motor continued to outperform the broader market, gaining share amid steady demand for premium and mid-segment models. Hero MotoCorp emerged as the biggest underperformer, with registrations declining on a year-on-year basis. Bajaj Auto is likely to report flat registrations, pointing to pressure in its domestic two-wheeler portfolio despite strength in exports.

The data suggests that while aspirational and premium demand is holding up, the core commuter category, a bellwether for mass consumption, is still searching for a sustained revival.

Electric Two-Wheelers: Sharp Divergence Persists

The electric two-wheeler (E2W) segment continued to show stark divergence among players. Ather Energy stood out with registrations rising over 40% year-on-year, reflecting stronger product acceptance and expanded distribution.

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In contrast, Ola Electric’s weakness is expected to persist, with registrations estimated to have fallen nearly 50% compared to last December, highlighting ongoing challenges in demand traction.