Press Releases

Auto Industry Performance of December 2025 and Q3 (October - December 2025)

1. Key Highlights from Q3 (October–December 2025) and CY 2025

1. Passenger vehicles

• Passenger Vehicle segment posted its highest ever sales of Q3 of 12.76 Lakh units in Q3 of 2025-26, registering a growth of 20.6%, compared to Q3 of same period last year.
• The segment also clocked its highest ever sales of a calendar year of 44.90 Lakh units during Jan – Dec 2025, posting a growth of 5.0%, as compared to Jan – Dec 2024 period, driven by the Q3 offtake.
• This robust performance was supported by improved affordability following the GST rate reduction, benefits from personal income tax relief, successive repo rate cuts by RBI easing financing costs, and a renewed sense of optimism among buyers, which together helped in boosting consumer demand in this festive quarter.
• Passenger Vehicles saw their highest ever exports in Q3 of 2025-26 of 2.25 Lakh units registering a growth of 11.7% over Q3 of 2024-25. In addition, the segment also posted its highest ever exports during Jan–Dec 2025 of 8.63 Lakh units registering a growth of 16.0%, as compared to same period last year. The demand has been steady across most markets including in the Middle East, Africa and Latin America.

2. Two-Wheelers

• In Q3 of 2025–26, Two-Wheelers posted their highest ever Q3 sales of 5.70 million units, crossing the 5 million mark for the first time, with a growth of 16.9% as compared to Q3 of 2024–25
• For the Jan-Dec 2025 period, the Two-Wheeler segment crossed the 20-million-mark sales with 20.50 million units, with a growth of 4.9% in calendar year, though it is still below the peak it had achieved in 2018.
• The implementation of GST 2.0 has improved affordability of Two-Wheelers and boosted household disposable income, enabling growth. The festive season this year was the strongest in recent years. Supportive macroeconomic measures including multiple reductions in repo rates and income tax relief in 2025 also provided the necessary traction for this segment.
• While growth has been observed across both urban and rural markets, the current trend has been led primarily by urban demand, which is also reflected in the stronger growth in scooters compared to motorcycles.
• Two Wheelers also recorded their highest ever exports in Q3 of 2025-26 of 1.37 million units registering a growth of 24.3% over Q3 of 2024-25. During Jan-Dec 2025, 4.94 million units of Two-Wheelers were exported, which is the highest exports of calendar year period, with a growth of 24.2%, as compared to Jan-Dec 2024. Overall, the growth in exports during the quarter was driven by a combination of improving macro-economic conditions in key markets of Africa, steady demand from South Asian markets and industry-wide recovery in motorcycle demand.

3. Three Wheelers

• In Q3 of 2025-26, Three-Wheelers posted their highest ever Q3 sales of 2.15 Lakh units, with a growth of 14.0%, especially driven by the Passenger Carrier sub-segment.
• Three Wheelers also posted their highest ever sales in Jan-Dec 2025 of 7.88 Lakh units, registering a growth of 8.2% as compared to Jan to Dec of 2024.
• Performance of the Three-Wheeler segment is driven by increased economic activity, rising movement of people and goods, strengthening personal and commercial mobility needs for meeting the transportation needs in urban and semi urban areas.
• Easier financing options and increased replacement sales has also been helping in supporting this growth momentum.
• Exports of Three Wheelers posted a good growth of 70.1% in Q3 of 2025-26 with exports of around 1.27 Lakh units, as compared to Q3 of last year. Three-Wheeler exports reached 4.26 lakh units in calendar year Jan-Dec 2025, posting a growth of 42.7%, compared to the same period of last year. Increased exports to Sri Lanka and African nations have contributed to this growth.

4. Commercial Vehicles

• Commercial Vehicle segment recorded its highest ever sales of Q3 of 2.90 Lakh units in Q3 of 2025–26, reflecting a growth of 21.5%, compared to Q3 of 2024–25.
• This segment also posted its highest ever sales of Jan-Dec period of 10.28 Lakh units in Jan-Dec 2025 with a growth of 7.7%, compared to Jan-Dec 2024.
• In addition to festive demand pull during Q3, the rollout of GST 2.0 reform has provided a significant boost to consumer sentiment and an increase in overall consumption levels which has led to increased freight activity in the economy. This has further enhanced the freight-carrying intra-city logistics requirements, which is translating into higher demand.
• 0.25 Lakh units of Commercial Vehicles were exported with a growth of 13.6% in Q3 of 2025-26, as compared to Q3 of last year. During Jan-Dec 2025, 0.92 Lakh units of Commercial Vehicles were exported, with a growth of 27.1%, as compared to Jan-Dec 2024. Neighbouring countries and the Middle East have been the steady markets for Commercial Vehicles.

2. Growth Outlook for Indian Auto Industry - Q4 (Jan-March) and FY 2025-26

CY 2025 has been a landmark year for the Indian Automobile industry, supported by a series of structural policy reforms that have strengthened demand fundamentals and significantly boosted consumer confidence.

• The industry enters Q4 2025-26 with firm momentum after strong double-digit growth across all vehicle segments in late 2025 and expects steady wholesale and retail volumes traction through the quarter.
• The year-end sales push, healthy pipeline of bookings, and the full transmission of 2025 rate cuts into lending rates are expected to support demand, pointing to continued growth into FY2025–26, underpinned by stable macro-economic conditions and supportive policy reforms of the Government of India.
• 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.

Monthly Performance: December 2025

Production: The total production of Passenger Vehicles¹, Three Wheelers, Two Wheelers and Quadricycle in the month of December 2025 was 26,33,506 units

Domestic Sales:

• Passenger Vehicles² sales were 3,99,216 units in December 2025.
• Three-wheeler sales were 61,924 units in December 2025.
• Two-wheeler sales were 15,41,036 units in December 2025.

¹ BMW, Mercedes, JLR, Tata Motors & Volvo Auto data are not available.

² BMW, Mercedes, JLR & Volvo Auto data are not available. Tata Motors Domestic Sales data for December included only in this document. However, without Tata Motors, ‘Total PV’ would be 2,70,704 units for December 2024 and 3,49,170 units for December 2025

Quarterly Performance: October - December 2025

Production: Total production of Passenger Vehicles³, Commercial Vehicles⁴, Three Wheelers, Two Wheelers and Quadricycle in October - December 2025 was 88,36,517 units.

Domestic Sales:

• Passenger Vehicles³ sales were 12,76,073 units in October– December 2025.
• Commercial Vehicles⁴ sales were 2,90,085 units in October – December 2025.
• Three-wheeler sales were 2,15,211 units in October – December 2025.
• Two-wheeler sales were 56,96,238 units in October – December 2025.

Financial Year Performance: April - December 2025

Production: Total production of Passenger Vehicles³, Commercial Vehicles⁴, Three Wheelers, Two Wheelers and Quadricycle in April - December 2025 was 2,53,71,989 units.

Domestic Sales:

• Passenger Vehicles³ sales were 33,27,157 units in April – December 2025.
• Commercial Vehicles⁴ sales were 7,54,067 units in April – December 2025.
• Three-wheeler sales were 6,09,661 units in April – December 2025.
• Two-wheeler sales were 1,59,32,877 units in April – December 2025.

Calendar Year Performance: January - December 2025

Production: Total production of Passenger Vehicles³, Commercial Vehicles⁴, Three Wheelers, Two Wheelers and Quadricycle in January - December 2025 was 3,31,91,967 units.

Domestic Sales:

• Passenger Vehicles³ sales were 44,89,717 units in January - December 2025.
• Commercial Vehicles⁴ sales were 10,27,877 units in January - December 2025.
• Three-wheeler sales were 7,88,429 units in January - December 2025.
• Two-wheeler sales were 2,05,00,639 units in January - December 2025.

³BMW, Mercedes, JLR & Volvo Auto data are not available.

⁴Daimler data is not available.

Commenting on sales data of calendar year 2025, Mr Shailesh Chandra, President, SIAM said, “2025 has been a landmark year for the Indian Auto industry. The year began with a subdued first half, and the industry continued to navigate supply side challenges. With multiple structural policy reforms including the income tax relief, successive repo rate cuts and the rollout of GST 2.0 laid the foundation for a positive demand environment. The reduction of GST rates made vehicles more affordable and injected fresh momentum into the sector. Growth during the year has been broad-based across segments, with Passenger Vehicles, Commercial Vehicles and Three-Wheelers recording their highest ever sales and Two-wheelers posting the 2^nd highest sales ever, in a calendar-year.

Passenger vehicles grew by 5.0 % in 2025 as compared to last year, with sales of around 45 Lakh units. Commercial Vehicles posted a growth of 7.7% in 2025 as compared to the previous year, with sales of 10.28 Lakh units. Three Wheelers registered a growth of 8.2% in 2025 as compared to the same period last year, with sales of 7.88 Lakh units. Two Wheelers crossed the 20-million-mark sales for the 2^nd time in a calendar year with 20.50 million units, with a growth of 4.9% in 2025, though it is still below the peak it had achieved in 2018. In addition, exports witnessed double-digit growth across vehicle segments in 2025, compared to calendar year 2024.

Looking ahead, the industry expects the positive momentum to continue well into 2026, supported by stable macro-economic conditions, improving affordability and continued policy support. The industry will also continue to monitor geopolitical developments to ensure resilience in supply chain and export volumes.”

Commenting on the performance of Q3 of 2025-26, Mr Rajesh Menon, Director General, SIAM said, “All Vehicle Segments viz., Passenger Vehicles, Commercial Vehicles Three Wheelers and Two Wheelers posted their highest ever sales of Q3 in 2025-26 with double digit growth as compared to previous year. Passenger Vehicles grew by 20.6% in Q3 of 2025-26 with sales of 1.28 million units, compared to the previous year. Two-Wheelers grew by 16.9% in this Quarter, compared to last year, posting sales of 5.70 million units while Commercial Vehicles grew by 21.5% in Q3, compared to Q3 of last year, with sales of 2.90 Lakh units. Three-Wheelers grew by 14.0% in Q3 of 2025-26, with sales of 2.15 Lakh units.”

Rajesh Menon, Director General, SIAM

rajesh.menon@siam.in