Passenger vehicle wholesales in India reached an unprecedented 4.55 million units in 2025, marking a nearly 6% increase compared to the previous year. This growth, fueled by favorable policies in the latter half of the year, enabled the industry to recover from a slow start. Major contributors included leading manufacturers such as Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Toyota Kirloskar Motor, and Skoda Auto, all of which reported record sales figures.
Record Sales and Market Dynamics
In 2025, the Indian passenger vehicle market experienced a significant transformation, surpassing its prior record of 4.3 million units set in 2024. Maruti Suzuki led the market with total wholesales of 1.84 million units, eclipsing its previous record of 1.79 million units. Partho Banerjee, Senior Executive Officer at Maruti Suzuki, credited this growth to multiple factors, including the implementation of GST reforms and income tax relief measures. He noted a considerable recovery in the market during the latter half of the year, especially after October.
The competitive landscape also evolved, with Mahindra & Mahindra and Tata Motors surpassing Hyundai Motor India to become the second and third largest passenger vehicle manufacturers by volume. This shift underscores the changing preferences of Indian consumers, who increasingly lean towards SUVs, which comprised 55.8% of total sales in 2025, up from 53.8% in 2024. Additionally, small cars showed signs of recovery, hinting at changing market dynamics.
Performance of Key Players
Tata Motors Passenger Vehicles had a successful year, reaching record sales of 587,218 units, including 81,125 electric vehicles (EVs). Shailesh Chandra, Managing Director and CEO of Tata Motors, highlighted the positive influence of GST 2.0 reforms, particularly in the latter half of the year. This marked the fifth consecutive year of record sales for the company, showcasing its robust market position.
Mahindra & Mahindra also celebrated its highest-ever sales volumes in both SUVs and light commercial vehicles. Nalinikanth Gollagunta, CEO of Mahindra’s Automotive Division, expressed optimism about the company’s performance, noting significant milestones achieved in 2025. Hyundai Motor India reflected overall positive sentiment in the market, reporting a 6.6% year-on-year growth in total sales for December 2025.
Outlook for the Future
Looking forward, industry leaders remain optimistic about the future of the Indian passenger vehicle market. Banerjee from Maruti Suzuki expressed confidence that the current positive trends would persist into the next year, predicting a growth rate of 6-7% if favorable conditions, such as good monsoon seasons, continue. The industry sentiment is buoyed by the successful implementation of GST reforms and the increasing acceptance of new vehicle models among consumers.
Toyota Kirloskar Motor reported strong performance, achieving its highest-ever annual sales of 388,801 units, representing a 19% increase from 2024. Varinder Wadhwa, Vice-President of Sales and Service, attributed this success to enhanced customer acceptance and product improvements. Similarly, Skoda Auto India and JSW MG Motor India saw significant growth, with Skoda’s sales more than doubling from the previous year.
Digihunt is not a financial advisor and this is not investment advice.