Double-digit growth projected as auto sector shows steady retail growth in December 2025: Report
Dec 30, 2025
New Delhi [India], December 30 : Auto retail sales in India maintained healthy momentum in December 2025, with industry players projecting the positive trend to continue into the final quarter of the fiscal year. Wholesale numbers for December 2025 are expected to show double-digit growth across most major manufacturers.
According to a report by PhillipCapital India, demand remains robust across multiple segments, including passenger vehicles, two-wheelers, and commercial vehicles, bolstered by the recent GST cut and strong rural sentiment.
The report highlights that the passenger vehicle segment continues to be dominated by SUVs. Leading manufacturers like Mahindra & Mahindra and Maruti Suzuki are seeing strong traction, particularly in premium models.
While entry-level cars have shown signs of recovery, customer preference remains heavily skewed toward vehicles with premium features and higher safety ratings. The report notes that "the trend should continue to favor towards premiumization, SUVs & alternate fuel." Maruti Suzuki said that it expects "around 10 per cent YoY growth during January-March as supply of small cars improves."
In the two-wheeler market, performance has improved following the GST cut, with Royal Enfield and TVS Motor outperforming their peers. Although competition is rising with the introduction of new models at competitive prices, inventory levels remain well-managed at less than one month of stock.
The report states that "Royal Enfield is leading the segment," while brands like Hero MotoCorp and Bajaj Auto are experiencing stable to slightly positive growth. For Royal Enfield, "upgraders are supporting sales post GST cut," specifically in the popular 350cc category.
The commercial vehicle and tractor segments are also showing steady signs of improvement. Small commercial vehicles are leading a recovery in their sector after facing previous affordability challenges, while tippers have bounced back following an extended monsoon season.
In the agricultural space, tractor sales remain healthy despite December being a typically weak season. This growth is driven by state subsidies, favourable crop prices, and strong "rural sentiment," according to the report.
Hero MotoCorp is projected to see a 31 per cent year-on-year increase, while companies like Maruti Suzuki and TVS Motor are expected to grow by 20 per cent and 25 per cent, respectively. The report suggests that "inventory is under control for most OEMs," providing a stable foundation for the upcoming quarter. As the industry moves into 2026, many manufacturers are expected to reduce discounts and implement slight price increases.
