Passenger vehicle dispatches hit top gear in 2025
Passenger vehicle dispatches from companies to dealers raced to the highest ever sales mark in a calendar year in 2025 as a reduction in prices due to GST reforms led to robust sales in the festive season, industry body SIAM said on Tuesday.
The overall passenger vehicle wholesales jumped 5 per cent year-on-year to 44,89,717 lakh units last year as compared with 42,74,793 units in the 2024 calendar year. Utility vehicle dispatches stood at 29,54,279 units last year, up 7 per cent as compared with 27,49,932 units in 2024. Passenger car wholesales saw a marginal increase at 13,79,884 units, while van dispatches rose 1 per cent last year as compared to the 2024 calendar year.
Three-wheeler and commercial vehicle segments also witnessed highest ever dispatched in a calendar year in 2025. Three-wheeler dispatches rose to 7,88,429 units last year, up 8 per cent as compared to 7,28,670 units in 2024. Similarly, commercial vehicle dispatches stood at 10,27,877 units, up 8 per cent against 9,54,051 units in the 2024 calendar year. Two-wheeler sales stood at 2,05,00,639 units last year, up 5 per cent as compared with 1,95,43,093 units in 2024.
“2025 has been a landmark year for the Indian auto industry. The year began with a subdued first half, and the industry continued to navigate supply-side challenges.
With multiple structural policy reforms, including the income tax relief, successive repo rate cuts and the roll-out of GST 2.0, the foundation for a positive demand environment,” Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra said in a statement. The reduction of GST rates made vehicles more affordable and injected fresh momentum into the sector,
he added.
Growth during the year has been broad-based across segments, with passenger vehicles, commercial vehicles and three-wheelers recording their highest ever sales and two-wheelers posting the second highest sales ever, in a calendar-year, Chandra noted. In addition, exports witnessed double-digit growth across vehicle segments in 2025, compared to calendar year 2024, he added.
“Looking ahead, the industry expects the positive momentum to continue well into 2026, supported by stable macroeconomic conditions, improving affordability and continued policy support,” Chandra stated.
The industry will also continue to monitor geopolitical developments to ensure resilience in the supply chain and export volumes, he added. SIAM Director General Rajesh Menon said all vehicle segments — passenger vehicles, commercial vehicles, three-wheelers and two-wheelers — posted their highest ever sales of the third quarter (Q3) in 2025-26 with double-digit growth as compared to the previous year.
In December 2025, passenger vehicle dispatches increased 27 per cent year-on-year, led by robust demand for utility vehicles. Total passenger vehicle sales stood at 3,99,216 units last month as compared with 3,14,934 units in the year-ago period, registering a growth of 26.8 per cent.
Two-wheeler dispatches to dealers rose 39 per cent year-on-year to 15,41,036 units in December 2025 as against 11,05,565 units in the same month of 2024. Total three-wheeler sales stood at 61,924 units last month, up 17 per cent against 52,733 units in December 2024. On sales outlook, SIAM noted that the industry enters the fourth quarter of 2025-26 with firm momentum after strong double-digit growth across all vehicle segments in late 2025, and expects steady wholesale and retail volumes traction through the quarter.
The year-end sales push, healthy pipeline of bookings, and the full transmission of 2025 interest rate cuts on loans are expected to support demand, pointing to continued growth into 2025-26, underpinned by stable macroeconomic conditions and supportive policy reforms of the Government of India, it added.
“While remaining watchful of geopolitical developments, the industry expects FY 2025-26 to close on a positive growth trajectory, with policy-led tailwinds firmly in place, sustaining the robust performance witnessed in recent years,” the industry boy stated.
