How Did Domestic Passenger Vehicle Wholesales Surge 26% in December with 4.55 Million Units Sold in 2025?
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Synopsis
In December, domestic passenger vehicle wholesales experienced a remarkable 26% increase year-on-year, reaching nearly 405,000 units. This surge is attributed to effective GST rationalization and year-end discounts. With 2025 closing at a record 4.55 million units sold, industry leaders highlight the impact of pre- and post-GST phases on market dynamics.
Key Takeaways
- Wholesales of domestic passenger vehicles rose by 26% in December.
- 4.55 million units sold in 2025, a record high.
- GST rationalization and year-end discounts drove demand.
- SUV penetration increased to 55.8% of total PVs.
- ICRA forecasts 1–4% growth for FY26.
Mumbai, Jan 2 (NationPress) Domestic passenger vehicle (PV) wholesales saw a significant increase of around 26% year-on-year, reaching nearly 405,000 units in December. This rise was fueled by continued consumer demand following the goods and services tax (GST) rationalization in September, along with attractive year-end discounts provided by manufacturers.
Many buyers accelerated their purchases in anticipation of price hikes by automakers in January, contributing to this impressive growth. For the entire calendar year of 2025, wholesales rose by 5.7% year-on-year, achieving a record total of approximately 4.55 million units, according to industry estimates. December deliveries from manufacturers to dealers also saw a rise of about 26.2%, climbing to 407,497 units from 322,965 units in the same month last year.
Despite the overall annual growth lagging behind December's surge due to muted demand in the first half, industry leaders noted that the GST rate cut significantly boosted sales.
Most automakers reported strong growth, with some achieving record sales in December, reflecting increases of up to 37%. The penetration of SUVs increased to 55.8% of total PVs compared to 53.8% in 2024, while small cars began to show recovery following the GST rate cut.
“It’s essential to analyze 2025 in two phases: pre-GST and post-GST. The combination of these factors has truly invigorated the market since October,” explained a senior industry figure.
In a recent report, ratings agency ICRA projected a wholesale volume growth of 1–4% for FY26, supported by ongoing demand, GST cuts, new model launches, and sustained market momentum.
The report also highlighted that in November, three-wheeler sales in India soared 21.3% to 71,999 units, while two-wheeler sales surged 21.2% to 1,944,475 units.
Moreover, scooter sales grew significantly by 29.4% to 735,753 units, indicating strong urban demand, while motorcycle sales increased by 17.5% to 1,163,751 units, bolstered by steady purchases from rural and semi-urban areas.
aar/na
Point of View
I believe the surge in domestic passenger vehicle sales is a clear indicator of the Indian market's resilience. The favorable impact of policy reforms and changing consumer preferences should be closely monitored, as they will shape the future trajectory of the automotive industry.
NationPress
08/01/2026
Frequently Asked Questions
What factors contributed to the increase in passenger vehicle sales?
The increase in passenger vehicle sales was driven by sustained consumer demand following GST rationalization and year-end discounts offered by manufacturers.
What was the total number of passenger vehicles sold in 2025?
Approximately 4.55 million passenger vehicles were sold in 2025, marking a record high in wholesales.
How did SUV sales perform in December?
SUV sales penetrated 55.8% of total passenger vehicles in December, indicating a growing preference among consumers.
What is the forecast for FY26 wholesale volume growth?
ICRA forecasts a wholesale volume growth of 1–4% for FY26, driven by steady demand and new model launches.
What trends were observed in two-wheeler and three-wheeler sales?
In November, three-wheeler sales grew by 21.3%, while two-wheeler sales increased by 21.2%, indicating a positive trend in the market.
