India’s Auto Retail Surges 14.63% In December 2025, Outlook Remains Strong

India’s automobile retail industry closed 2025 on a high note, with strong sales growth across categories. According to the Federation of Automobile Dealers Associations (FADA), retail sales in December rose 14.63% year-on-year, underscoring robust consumer demand and improved supply chains. The performance highlights resilience in the sector despite broader economic challenges.  

Key highlights from the announcement include  

• Auto retail sales in December 2025 stood at 20,28,821 units, marking a 14.63% year-on-year increase.  
• Two-wheeler, passenger vehicle, and commercial vehicle segments contributed significantly to the growth.  
• Major automakers including TVS Motor (TVSM.NS), Tata Motors (TAMO.NS), and Maruti Suzuki (MRTI.NS) reported strong retail momentum.  
• FADA’s dealer survey revealed that 70.48% of respondents expect growth in the next three months.  
• The outlook remains decisively upbeat, supported by festive demand, new launches, and easing supply constraints.  
• Industry experts believe the positive sentiment will carry into early 2026, reinforcing confidence in India’s auto sector.  

The December performance and optimistic dealer sentiment reflect a strong foundation for India’s auto industry heading into 2026. With consumer demand holding firm and manufacturers expanding offerings, the sector is poised for sustained growth in the coming quarters.  

Sources: Reuters, Economic Times, Business Standard