Sign In
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
New Delhi: India’s passenger vehicle retail sales jumped massively in December 2025, with faster-growing rural markets that had a better pace than the urban demand, according to the data from the Federation of Automobile Dealers Associations (FADA) on Tuesday. PV retail sales saw a rise of 26.64 per cent year-on-year to 3,79,671 units in December.
The rural demand grew by 32.40 per cent YoY against the 22.93 per cent growth in urban markets. It highlights a widening spread of personal mobility that went beyond the big cities, as noted by FADA.
The strong rural performance helped cap the year in which overall PV retail sales grew by 9.70 per cent in calendar year 2025 to 44,75,309 units, with non-urban regions once again outpacing cities. In the course of the full year, rural PV sales rose by 12.31 per cent, compared to an 8.08 per cent increase in urban areas, highlighting the industry’s growing reliance on demand from outside metro centres.
FADA President CS Vigneshwar said, “India’s auto retail delivered a confident close, with total retails at 2,81,61,228 units, registering a 7.71% YoY growth. The year, however, was a tale of two halves—Jan to Aug remained subdued despite supportive macro cues such as direct tax relief in the Union Budget and RBI’s cumulative rate easing through 2025. During this phase, customers stayed value-conscious, and financier approvals remained selective in pockets, resulting in uneven conversions across markets.”
Total automobile retail sales across all segments went up to 2,81,61,228 units in CY’25, marking a year-on-year growth of 7.71 per cent. This performance was driven by a noticeable recovery during the second half of the year after quite a subdued January-to-August period. FADA described 2025 as a “two-half year”, noting that demand gained momentum from September onwards following the coming of the GST 2.0 improved affordability and boosted consumer emotions, coming during the festival season.
December provided a robust close to the year, with overall auto retail sales going up to 14.63 per cent year-on-year with 20,28,821 units. Passenger vehicles were not the only contributors, with commercial vehicles also posting growth of 24.60 per cent, three-wheelers surged 36.10 per cent, two-wheelers climbed 9.50 per cent, and tractor sales increased 15.80 per cent. This was in contrast to construction equipment sales, which declined by 18.54 per cent.
The FADA points out that the inventory levels in the PV segment eased in December to about 37–39 days. This was a reduction of about seven days from the previous month, which shows improved channel health.
The data also marked the steady shift towards alternative fuel vehicles. In calendar year 2025, CNG-powered models made up 21.30 per cent of PV sales, while electric vehicles came with a 3.95 per cent share. Just in December, CNG penetration in the PV segment was close to 21 per cent, with EVs making up around 4 per cent of sales.
For the coming time frame, dealer outlook is quite positive, according to FADA. For January 2026, 70.48 per cent of dealers anticipate growth, with demand expected to go up following festivals like Sankranti and Pongal and even the marriage season.
Between the January–March quarter, 74.91 per cent of dealers expect continued expansion, thanks to the festive buying, year-end demand and sustained rural strength. FADA, though, cautioned that financing turnaround times and the availability of high-demand models will remain key areas to watch.
