Domestic passenger vehicle (PV) wholesales saw a significant increase of around 26% year-on-year in December, reaching nearly 405,000 units. This rise was driven by sustained demand following the GST rationalization in September and end-of-year discounts offered by manufacturers.
For the entire year of 2025, PV wholesales grew by 5.7% year-on-year to a record high of approximately 4.55 million units, as per industry estimates. In December, dispatches from manufacturers to dealers spiked by around 26.2% to 407,497 units from 322,965 units in the previous year.
Industry leaders noted that while the full-year growth lagged behind the December surge, the initial half of the year experienced subdued demand, which was later boosted by the GST rate reduction.
Most carmakers witnessed robust growth, with some companies achieving their highest-ever December sales, marking an increase of up to 37%. The penetration of SUVs in the total PV segment rose to 55.8% from 53.8% in 2024, while small cars showed signs of recovery post the GST rate cut.
A senior industry leader emphasized the impact of pre- and post-GST periods in 2025, attributing the market’s revitalization to a combination of factors since October.
According to a recent report by the ratings agency ICRA, wholesale volume growth for FY26 is forecasted at 1–4%, supported by consistent demand, GST revisions, new model launches, and sustained momentum.
The report highlighted a 21.3% growth in three-wheeler sales to 71,999 units and a 21.2% increase in two-wheeler sales to 1,944,475 units in India during November. It also projected that ongoing favorable policy changes and improved market sentiments will continue to propel growth through 2026.
Furthermore, scooter sales surged by a robust 29.4% to 735,753 units, reflecting strong urban demand, while motorcycle sales rose by 17.5% to 1,163,751 units, supported by consistent rural and semi-urban purchases.
