Revving Up: India's Passenger Vehicle Boom in 2025

Passenger vehicle sales in India hit a record 45.5 lakh units in 2025, fueled by GST 2.0 reforms. Major players like Maruti Suzuki, Mahindra & Mahindra, and Tata Motors led the growth. SUVs gained popularity, and electric vehicle sales peaked as taxation and policies boosted market momentum.

The Indian passenger vehicle industry saw a record-breaking year in 2025, reaching unprecedented sales of 45.5 lakh units. This surge was primarily driven by the introduction of GST 2.0 reforms, which mitigated a sluggish start to the year, according to industry reports.

Leading automakers such as Maruti Suzuki India, Mahindra & Mahindra, and Tata Motors Passenger Vehicles were instrumental in surpassing the previous high of 43.05 lakh units sold in 2024. In an interesting turn, domestic players like Mahindra & Mahindra and Tata Motors overtook Hyundai Motor India in sales volume rankings, securing the second and third positions.

SUVs dominated the market, comprising 55.8% of total sales compared to 53.8% the previous year. The auto sector also witnessed significant strides in electric vehicle sales, propelled by policy changes including reduced GST rates and tax incentives, thereby setting the stage for continued growth into 2026.

(With inputs from agencies.)