Auto Sales Rise 27% in December 2025 as Utility Vehicles See Record Growth: SIAM

India's passenger vehicle manufacturers delivered 3,99,216 units to dealerships in December 2025, marking a significant 27 per cent increase compared with the 3,14,934 units dispatched during the corresponding period in 2024, according to data released by the Society of Indian Automobile Manufacturers (SIAM), news agency PTI has reported. The automotive industry body attributed the 26.8 per cent annual growth primarily to strong consumer appetite for utility vehicles, which continues to dominate market preferences.

The two-wheeler category witnessed even more remarkable growth, with dealer dispatches climbing 39 per cent year-on-year to reach 15,41,036 units in December, substantially higher than the 11,05,565 units recorded in December 2024, SIAM revealed in its official statement.

Three-wheeler sales also contributed to the positive momentum, totaling 61,924 units last month -- representing a 17 per cent increase over the 52,733 units sold in December 2024.

Industry Outlook Remains Optimistic

Regarding future outlook, SIAM said that the automotive sector is entering the final quarter (Q4) of financial year 2025-26 with substantial momentum, following strong double-digit expansion across all vehicle categories in late 2025. The industry body anticipates sustained wholesale and retail volume growth throughout the quarter.

The organisation highlighted several factors expected to bolster demand, including year-end sales initiatives, a robust order backlog, and the complete implementation of 2025 interest rate reductions on vehicle financing.

"While remaining watchful of geopolitical developments, the industry expects FY2025-26 to close on a positive growth trajectory, with policy-led tailwinds firmly in place, sustaining the robust performance witnessed in recent years," SIAM was quoted as saying.

The continued expansion is projected to extend into 2025-26, supported by stable macroeconomic fundamentals and favourable policy measures introduced by the Government of India, the industry body added.