Automotive Sales Q4 2025 delivered a balanced performance for the Indian auto industry between October and December. Festive demand lifted volumes early in the quarter, while GST revisions influenced pricing strategies, purchase timing and segment-wise momentum.
Automotive Sales Q4 2025 – Strong Start in October
October set the tone for Automotive Sales Q4 2025 with one of the strongest festive performances in recent years. Total vehicle registrations crossed the 40-lakh-unit mark across categories, driven by high showroom footfall during Navratri and Diwali.
Passenger vehicles recorded their highest-ever monthly volumes. Market leaders posted record dispatches, supported by SUVs and compact cars. Maruti Suzuki recorded over 2.2 lakh units for the month, while Mahindra & Mahindra delivered over 70,000 SUVs, underlining sustained demand for high-riding vehicles.
Two-wheelers also saw a sharp rise in volumes, especially scooters and entry-level motorcycles. Electric two-wheelers continued to gain traction, supported by stable pricing and improving urban acceptance.
Stable Momentum in November
November witnessed a correction from festive highs but maintained healthy growth. Passenger vehicle sales stayed above 3.5 lakh units, reflecting steady urban demand and continued interest in SUVs.
Two-wheelers and three-wheelers remained strong, with double-digit year-on-year growth. Commercial vehicle sales also improved, supported by logistics movement and infrastructure activity ahead of the year-end.
OEMs focused on retail-driven sales rather than heavy stock build-up. This helped maintain balanced dealer inventory levels while protecting margins in a competitive market.
Automotive Sales Q4 2025 and GST Influence
GST changes introduced during the quarter played a clear role in shaping buying behaviour. Reduced tax impact on select mass-market vehicles helped improve affordability, especially during October and early November.
Buyers advanced purchases to benefit from revised pricing, while OEMs adjusted variant mixes and offers to remain competitive. Premium vehicles faced limited pressure due to marginal price increases, leading to cautious demand in higher segments.
Automotive Sales Q4 2025 – Year-End Push in December
December closed Automotive Sales Q4 2025 on a positive note. Yet again Maruti Suzuki reported sales above 2.1 lakh units, supported by year-end offers and pending deliveries.
The two-wheeler segment performed strongly, with TVS Motors recording growth of over 40 percent compared to the previous year. Export demand also improved, helping manufacturers offset domestic seasonality.
Electric vehicle sales remained steady through December. Lower GST rates continued to support EV pricing, while fleet and urban buyers sustained demand despite limited subsidies.
Market Outlook Beyond Q4
The performance of Automotive Sales Q4 2025 highlighted a market driven by value, timing and policy clarity. GST adjustments helped stabilise demand without triggering excessive discounting.
SUVs and EVs remain key growth drivers heading into 2026. With controlled inventory, disciplined pricing and steady consumer confidence, the industry appears well-positioned for the next phase of growth.
