Passenger Vehicle wholesales rise nearly 6% to all-time high of 45.5 lakh units in 2025

Passenger vehicle wholesales in India rose to a record 45.5 lakh units in 2025, registering a growth of nearly 6 per cent, aided by the rollout of GST 2.0 in the latter part of the year that helped the industry recover from a sluggish start, according to industry estimates reported by PTI.

The expansion in 2025 was driven by record annual sales posted by leading manufacturers including Maruti Suzuki India, Mahindra & Mahindra, Tata Motors Passenger Vehicles, Toyota Kirloskar Motor and Skoda Auto India. This helped the industry surpass its previous high of 43.05 lakh units recorded in 2024.

Domestic automakers Mahindra & Mahindra and Tata Motors Passenger Vehicles overtook long-standing number two player Hyundai Motor India to emerge as the second- and third-largest passenger vehicle makers by volume in 2025, pushing the South Korean carmaker to fourth position.

Sports utility vehicles continued to dominate demand, accounting for 55.8 per cent of total passenger vehicle sales in India, up from 53.8 per cent in 2024, while entry-level small cars showed early signs of recovery following the GST 2.0 reforms.

Maruti Suzuki India reported wholesales of 18.44 lakh units in 2025, exceeding its earlier record of 17.90 lakh units set in 2024. Senior Executive Officer for Marketing and Sales Partho Banerjee informed reporters that total industry sales for the year were estimated at 45.5 lakh units, compared with 43.05 lakh units in the previous year.

Banerjee stated that factors such as the reduction in GST rates, income tax relief on earnings up to Rs 12 lakh and cuts in the repo rate supported the auto industry’s performance during the year. He added that 2025 could be divided into a pre-GST and post-GST phase, with the combination of policy measures significantly boosting market sentiment from October onwards.

Tata Motors Passenger Vehicles Managing Director and Chief Executive Officer Shailesh Chandra said calendar year 2025 saw steady progress for the passenger vehicle industry, led by rising preference for SUVs and faster adoption of cleaner and emission-friendly powertrains, as per PTI. He informed that the momentum generated by the GST 2.0 rollout in late Q2 of FY26 strengthened further in Q3, resulting in the company’s fifth consecutive year of record annual sales. Tata Motors Passenger Vehicles sold 5,87,218 units during the year, including its highest-ever electric vehicle volumes of 81,125 units in a calendar year.

Mahindra & Mahindra Chief Executive Officer for the Automotive Division Nalinikanth Gollagunta stated that calendar year 2025 ended on a positive note, with the company achieving its highest-ever volumes in both the SUV and light commercial vehicle segments above 3.5 tonnes, marking a significant milestone.

Hyundai Motor India Ltd reported a 6.6 per cent year-on-year increase in total sales at 58,702 units in December 2025, comprising domestic sales of 42,416 units and exports of 16,286 units. Managing Director and Chief Executive Officer Tarun Garg stated that the positive momentum from GST 2.0 reforms helped the company record robust growth in total monthly sales for December.

Toyota Kirloskar Motor posted its highest-ever calendar year sales at 3,88,801 units in 2025, reflecting a growth of 19 per cent over the 3,26,329 units sold in 2024. Vice-President for Sales, Service, Used Car Business and Profit Enhancement Varinder Wadhwa said 2025 was a significant year for Toyota, marked by stronger customer acceptance across its products and services in both domestic and export markets. He added that sustained performance was supported by progressive GST reforms, strategic product enhancements and the introduction of new variants.

Skoda Auto India also reported its best-ever sales performance at 72,665 units in 2025, nearly doubling from 35,166 units in 2024. JSW MG Motor India reported a 19 per cent year-on-year increase in sales at 70,554 units during the calendar year compared with 2024.

Looking ahead to 2026, Banerjee of Maruti Suzuki said that prevailing tailwinds were expected to continue and that a normal monsoon could support industry growth of 6–7 per cent in the coming year.