Blitz Bureau
NEW DELHI: The Indian automobile sector closed the last quarter of calendar year 2025 on a strong footing, supported by GST tailwinds, improving macroeconomic conditions and positive rural sentiment. Despite some month-on-month moderation after the festive season, year-on-year growth remained robust across most segments, highlighting sustained demand momentum.
According to the latest December 2025 Auto Sales Report by Asit C. Mehta Investment Interrmediates Ltd (ACMIIL), retail traction stayed healthy even after the festive period, especially in passenger vehicles, commercial vehicles, tractors and three-wheelers. “The auto sector closed the last quarter of CY25 on a strong note, supported by GST tailwinds, improving macro conditions, and positive rural sentiment,” the report said.
Passenger vehicles emerged as a key growth driver, aided by GST rate cuts, year-end discounts and pre-buying ahead of January price hikes. Domestic volumes remained strong, even as exports were weaker for some manufacturers. Data from Axis Securities showed that domestic passenger vehicle sales rose around 27 per cent year-on-year (YoY) in December 2025 and grew about 6 per cent year-on-year (YoY) on a cumulative basis.
Commercial vehicles also showed clear signs of an early upcycle. Improved fleet utilisation, rising freight activity and infrastructure-led demand supported growth, marking the second consecutive month of strong performance. Domestic CV volumes grew 26 per cent year-on-year in December, the report said. Axis Securities expects the CV industry to deliver high single-digit growth in FY26, led by demand in the bus segment.
