Car sales surged in December as GST 2.0 continued to fuel demand across segments, enabling passenger vehicle makers to close the calendar year with solid momentum.
Passenger vehicle (PV) wholesales rose sharply in December 2025, extending the momentum seen in October and November after the rationalisation of GST rates. Industry estimates suggest domestic wholesales grew by around 25 percent year-on-year, supported by strong demand for SUVs and steady retail traction across urban and semi-urban markets.
Against domestic wholesales of about 3.22 lakh units in December 2024, PV volumes last month stood in the range of 4 lakh to 4.05 lakh units, translating into growth of 24.22 percent to 25.78 percent. For the full calendar year 2025, the industry recorded wholesales of nearly 45.5 lakh units, up 5.69 percent from 43.05 lakh units in the previous year.
Maruti Suzuki led the market with a record December performance. The country’s largest carmaker reported a 37.3 percent year-on-year rise in wholesales to 1,78,646 units. The Baleno emerged as the highest-selling car in December with 22,108 units, while the Dzire became the top-selling car of CY25 with sales of around 2.14 lakh units.
Commenting on demand trends, Maruti Suzuki senior executive officer for marketing and sales Partho Banerjee said the market has seen strong traction after GST 2.0, with customers actively looking to buy vehicles. He noted that dealer inventory is just three days, pending bookings stand at around 1.75 lakh units, CNG vehicles account for 37 percent of volumes, and SUVs contribute 31 percent.
Mahindra & Mahindra posted a 22.99 percent rise in PV wholesales to 50,946 units in December, driven largely by the Scorpio range. The model contributed about 15,900 units in December and nearly 1.77 lakh units in CY25. The company said it is focusing on design innovation, capacity expansion in electric SUVs and strengthening the charging ecosystem in 2026.
Tata Motors Passenger Vehicles reported a 13.15 percent increase in December wholesales to 50,046 units, with the Nexon and Punch remaining key volume drivers. The Nexon sold about 2.01 lakh units in CY25, while the Punch crossed 1.73 lakh units. Tata Motors said CY25 marked its fifth consecutive year of record annual sales, aided by strong SUV demand and rising adoption of cleaner powertrains.
Hyundai Motor India’s December volumes remained largely flat at 42,416 units, though the Creta emerged as the largest-selling SUV in CY25 with sales of over 2.01 lakh units. Toyota Kirloskar Motor saw strong growth, with wholesales rising 37.25 percent to 34,157 units, supported by robust demand across SUVs, MPVs and hatchbacks.
Overall, the continued impact of GST 2.0 and sustained SUV demand have set a positive tone for the auto industry as it heads into 2026.
