December Auto Sales Surge: Passenger Vehicles Up 27%, Two-Wheelers Rise 39%
India's automobile industry recorded strong December 2025 performance with passenger vehicles growing 27% YoY to 3,99,216 units and two-wheelers surging 39% to 15,41,036 units. Three-wheelers also contributed with 17% growth to 61,924 units. SIAM expects continued momentum through Q4 FY2025-26, supported by year-end sales push, healthy bookings, and interest rate transmission effects.
*this image is generated using AI for illustrative purposes only.
India's automobile industry extended its growth momentum in December 2025, with sales across all major segments posting strong year-on-year gains, according to monthly data released by the Society of Indian Automobile Manufacturers (SIAM). The robust performance reflects continued consumer demand and favorable market conditions across passenger vehicles, two-wheelers, and three-wheelers.
Passenger Vehicle Segment Shows Strong Growth
Passenger vehicle dispatches from manufacturers to dealers rose 27% year-on-year in December, supported by continued demand for utility vehicles. Domestic passenger vehicle sales reached 3,99,216 units in December 2025, compared with 3,14,934 units in the year-ago period, marking a growth of 26.80%.
| Metric | December 2025 | December 2024 | Growth (%) |
|---|---|---|---|
| Passenger Vehicle Sales | 3,99,216 units | 3,14,934 units | +26.80% |
| Two-Wheeler Sales | 15,41,036 units | 11,05,565 units | +39.00% |
| Three-Wheeler Sales | 61,924 units | 52,733 units | +17.00% |
Two-Wheeler Segment Leads Growth
Two-wheeler dispatches demonstrated exceptional performance, increasing 39% year-on-year to 15,41,036 units in December, up from 11,05,565 units in the same month last year. This segment's strong showing reflects robust demand across motorcycles and scooters. Three-wheeler sales also contributed positively, rising 17% to 61,924 units compared with 52,733 units in December 2024.
Company-Wise Performance Analysis
Among passenger vehicle manufacturers, Maruti Suzuki India led with 1,78,646 units, driven by passenger cars and utility vehicles. Mahindra & Mahindra recorded 50,946 units, primarily from utility vehicles, while Tata Motors sold 46,017 units from its utility vehicle portfolio.
| Company | December 2025 Sales | Key Segments |
|---|---|---|
| Maruti Suzuki India | 1,78,646 units | Passenger cars, utility vehicles |
| Mahindra & Mahindra | 50,946 units | Utility vehicles |
| Tata Motors | 46,017 units | Utility vehicle portfolio |
| Hyundai Motor India | 42,416 units | Passenger cars, utility vehicles |
| Toyota Kirloskar Motor | 34,153 units | MPVs, SUVs |
In the two-wheeler segment, Hero MotoCorp led with 5,48,439 units, primarily motorcycles, followed by Honda Motorcycle & Scooter India with 4,30,238 units driven largely by scooters. TVS Motor Company sold 3,25,694 units across motorcycles, scooters, and electric models.
Industry Outlook Remains Positive
SIAM noted that the industry entered the fourth quarter of 2025-26 with firm momentum after strong double-digit growth across all vehicle segments in the latter part of 2025. The organization expects steady traction in wholesale and retail volumes through the quarter, supported by year-end sales push, healthy booking pipelines, and full transmission of interest rate cuts announced in 2025.
The industry body highlighted that stable macroeconomic conditions and supportive government policies are likely to underpin growth into 2025-26. "While remaining watchful of geopolitical developments, the industry expects FY2025-26 to close on a positive growth trajectory, with policy-led tailwinds firmly in place, sustaining the robust performance witnessed in recent years," SIAM stated.
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