Domestic passenger vehicle wholesales jump 26% in December; 4.55 million units sold in 2025
SAN FRANCISCO, CALIFORNIA - JUNE 10: In an aerial view, Waymo cars are seen parked at a Waymo facility on June 10, 2025 in San Francisco, California. Robo-taxi company Waymo has limited service in San Francisco after several Waymo cars were set on fire and destroyed during the anti-immigration protests in Los Angeles over the past week. (Photo by Justin Sullivan/Getty Images)
Domestic passenger vehicle (PV) wholesales rose around 26 per cent year-on-year to nearly 4.05 lakh units in December, driven by sustained demand following the goods and services tax (GST) rationalisation in September and attractive year-end discounts offered by automakers.
The surge was further supported by buyers advancing purchases ahead of planned price hikes from January. For the calendar year 2025, PV wholesales increased 5.7 per cent year-on-year to a record high of about 4.55 million units, according to industry estimates. December dispatches from manufacturers to dealers rose 26.2 per cent to 4,07,497 units, compared with 3,22,965 units in the same month last year.
Despite the strong December performance, full-year growth lagged the year-end momentum as demand remained muted in the first half of the year before picking up after the GST rate cut, senior industry executives said.
Most carmakers reported healthy growth, with some posting their best-ever December sales, registering increases of up to 37 per cent. SUV penetration rose to 55.8 per cent of total PV sales, up from 53.8 per cent in 2024, while small cars showed signs of recovery following the GST reduction.
“We need to view 2025 in two halves – pre-GST and post-GST. It is a combination of factors that has really energised the market from October onwards,” a senior industry leader said.
Ratings agency ICRA, in a recent report, forecast wholesale volume growth of 1–4 per cent in FY26, supported by steady demand, GST cuts, new model launches and sustained market momentum.
The report noted that in November, three-wheeler sales in India rose 21.3 per cent to 71,999 units, while two-wheeler sales jumped 21.2 per cent to 19,44,475 units. Scooter sales increased sharply by 29.4 per cent to 7,35,753 units, reflecting strong urban demand, while motorcycle sales grew 17.5 per cent to 11,63,751 units, aided by steady rural and semi-urban demand.
ICRA said continued supportive policy reforms and improved market sentiment are expected to sustain the growth trajectory well into 2026.
