Record-Breaking Auto Sales in 2025: A GST-Driven Surge

In 2025, India's auto industry set new sales records, propelled by GST reforms and festive demand. The Society of Indian Automobile Manufacturers reported significant sales across all vehicle categories, with passenger vehicles leading the charge. Anticipated growth continues into 2026, aided by stable economic conditions and supportive policies.

In an unprecedented turn of events, passenger vehicle dispatches from companies to dealers soared to record-breaking heights in 2025. Industry body SIAM attributes this surge to GST reforms that reduced prices, spurring robust sales during the festive season.

Overall, passenger vehicle wholesales increased by 5% year-on-year, reaching 44,89,717 units compared to the 42,74,793 units sold in 2024. Utility vehicles, commercial vehicles, and three-wheelers also recorded their highest ever dispatches, reflecting the auto sector's broad-based growth last year.

Shailesh Chandra, President of SIAM, highlighted the role of structural policy reforms and macroeconomic stability in this remarkable growth narrative. Moving into 2026, the industry remains optimistic, bolstered by healthy booking pipelines and demand, despite ongoing geopolitical uncertainties.

(With inputs from agencies.)