Mumbai: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for CY’25 and December’25.
CY’25 Auto Retail
Reflecting on CY 2025 Auto Retail performance, FADA President Mr. C S Vigneshwar said: “India’s auto retail delivered a confident close, with total retails at 2,81,61,228 units, registering a 7.71% YoY growth. The year, however, was a tale of two halves—Jan to Aug remained subdued despite supportive macro cues such as direct-tax relief in the Union Budget and RBI’s cumulative rate easing through 2025 . During this phase, customers stayed value-conscious and financier approvals remained selective in pockets, resulting in uneven conversions across markets.
The turning point came from September onwards, when the landmark GST 2.0 rate rationalisation—including meaningful reductions for mass segments like small cars, two-wheelers (up to 350cc), three-wheelers and key commercial categories—improved affordability and lifted sentiment, leading to a clear upshift through Sept–Dec.
Category-wise, 2W grew 7.24%, PV rose 9.70%, CV expanded 6.71%, and Tractors posted 11.52%. Importantly, the year saw broad-based participation—urban retail grew 8.20% and rural 7.31%—and within PVs, rural demand was a standout, growing 12.31% versus 8.08% in urban markets, underlining the strengthening spread of personal mobility beyond metros.
CY’25 also reinforced the transition underway—EV share moved up in 2W, PV, CV and remained dominant in 3W, while CNG strengthened its presence in PV and CV, signalling a more diversified mobility mix. Overall, CY’25 closes on a celebratory note—stronger demand visibility, healthier enquiry pipelines and a more confident consumer, as we step into 2026.”
December’25 Auto Retail
Reflecting on December 2025 Auto Retail performance, FADA President Mr. C S Vigneshwar said: “December’25 proved to be a strong finish to the calendar year for auto retail. The industry retailed 20,28,821 vehicles, posting a healthy 14.63% YoY growth. The month clearly benefited from the continued positive sentiment post GST 2.0, year-end offers, and a fair amount of pre-buying ahead of expected price revisions in January, helping dealers convert enquiries and spillover bookings in a time-bound manner.
In Two-Wheelers, retail was up 9.50% YoY. While demand stayed steady, the month was also shaped by select supply constraints and model-wise availability, with many customers advancing their purchase decisions due to impending price increases. It is encouraging to see the transition continue—EV share in 2W improved to 7.40% (vs 6.13% last year), reflecting rising acceptance, especially in urban markets where growth remained stronger than rural on the back of better liquidity flow.
Commercial Vehicles witnessed a robust month, registering 24.60% YoY growth. The momentum was led by underlying economic activity, improved goods movement and sustained demand in the load segment, with MCV growth particularly strong and LCVs/HCVs also reporting healthy expansion. Passenger carrier demand remained supportive as well. That said, we continue to flag financing turnaround time and approval selectivity as a friction point in parts of the market—something that needs sharper focus to sustain momentum.
Passenger Vehicles continued their positive run, up 26.64% YoY, with rural PV growth at 32.40% outpacing urban growth—an important indicator of widening mobility demand beyond metros. Dealers also used December to liquidate MY’25 stocks on the back of attractive schemes and better model mix availability. Inventory for PVs is currently around 37–39 days which reduced by around 7 days from previous month. The fuel mix also underlines the shift underway—CNG is now ~21% of PV retail and EV is ~4%, signalling a steadily diversifying customer preference.”
Near-Term Outlook (Jan’26)
Dealer sentiment remains firmly positive, with our survey indicating 70.48% expecting growth. January is likely to be two-paced—a seasonally softer first half, followed by a stronger second half as the “lean” phase ends and buying typically picks up post Makar Sankranti/Pongal and into the marriage season, further aided by ongoing enquiries and booking pipelines. Macro tailwinds should also support demand: the RBI’s repo-rate reduction in Dec’25 and a continued focus on system liquidity improve borrowing sentiment at the margin.
Rural traction is expected to stay supportive, as the Government’s updates show robust rabi sowing progress and near-completion of kharif harvest, which typically improves cash flows in the hinterland over the next few weeks. At the same time, January price hikes announcement by OEMs can lead to some pre-buying and quicker decision-making, though affordability sensitivity will remain a watch-out. Operationally, conversions in Jan’26 will hinge on timely in-demand stock allocation, competitive schemes and faster finance approvals, especially in mass 2W, PV and LCV markets where customer drop-off risk rises with longer turnaround times. Overall sentiment is positive and clearly optimistic.
Next 3 Months Outlook (JFM’26)
Over the next three months, the retail outlook remains decisively upbeat as our survey shows 74.91% dealers expecting growth. Demand should stay supported by the post-GST 2.0 sentiment, a packed calendar of festivals and the marriage season, and typical financial-year-end buying.
Rural tailwinds look constructive as official updates show rabi sowing is tracking ahead of last year, and IMD’s forecast of a colder January is expected to be favourable for key winter crops—both of which can improve cash flows and confidence. On the macro side, the RBI’s repo rate at 5.25% provides incremental comfort on borrowing costs, while the market is also discussing a consumption-supportive, tax-relief oriented Union Budget—which, if delivered, can further lift discretionary demand. Price revisions announcement by OEMs are likely to keep purchase urgency intact, even as discounts may normalise on select MY’25 inventory. Overall sentiment is positive and improving—subject to timely supply, sharper finance turnaround time and disciplined channel inventory.
Key Findings from our Online Members Survey
- Liquidity
- Good 59.78%
- Neutral 35.06%
- Bad 05.17%
- Sentiment
- Good 64.94%
- Neutral 31.37%
- Bad 03.69%
- Expectation from January’25
- Growth 70.48%
- Flat 25.09%
- De-growth 04.43%
- Expectation in next 3 months
- Growth 74.91%
- Flat 23.25%
- De-growth 01.85%
- Expectation in CY26
- Growth 77.86%
- Flat 18.82%
- De-growth 03.32%
