Surge in Indian Vehicle Retail Sales Fuels Optimism for 2026

India's retail vehicle sales saw a remarkable 7.71% growth in 2025, reaching over 28 million units, courtesy of GST 2.0 and macroeconomic adjustments. Passenger, two-wheeler, and commercial vehicle segments showed significant increases. The adoption of EVs and CNG also expanded, projecting a diversified mobility future in 2026.

Retail vehicle sales in India experienced a notable boost in 2025, with figures climbing 7.71% to 2,81,61,228 units, up from 2,61,45,445 in the previous year. This growth, highlighted by the Federation of Automobile Dealers Associations (FADA), was primarily driven by the reforms under GST 2.0.

Passenger vehicle sales soared by 9.7%, reaching 44,75,309 units, while two-wheeler sales increased by 7.24%, marking 2,02,95,650 units. Similarly, the commercial vehicle sector recorded a 6.71% rise, and three-wheelers saw a 7.21% uptick. The year was split between a slow start and a robust recovery, thanks to tax revisions that boosted consumer buying.

FADA President CS Vigneshwar noted that 2025 ended on a high note with stronger demand forecasts and significant growth in electric vehicle penetration. The optimistic outlook for 2026 is fueled by continued positive sentiment from GST 2.0, supportive fiscal measures, and an enriched mobility mix with EVs and CNG options.

(With inputs from agencies.)