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Domestic passenger vehicle (PV) wholesales rose around 26 per cent year-on-year to almost 4,05,000 units in December, driven by sustained demand after the goods and services tax (GST) rationalisation in September and year-end discounts offered by companies. 

Buyers also advanced purchases ahead of automakers’ January price hikes which led to the robust surge. For calendar year 2025, wholesales climbed 5.7 per cent year-on-year to a record high of roughly 4.55 million units, industry estimates showed, with December dispatches from manufacturers to dealers up around 26.2 per cent to 407,497 units from 322,965 units a year earlier.

Growth for the full year fell behind the December surge as demand stayed muted in the first half, which was boosted by the GST rate cut, said senior industry leaders.

Most carmakers posted healthy growth, with companies posting their best-ever December sales up even 37 per cent. SUV penetration rose to 55.8 per cent of total PVs from 53.8 per cent in 2024, while small cars showed signs of recovery post GST rate cut.

“We need to split 2025 into two halves, a pre-GST and the post GST. it is a combination of these things which has really pepped up the market from the month of October onwards,” a senior industry leader said.

The ratings agency ICRA, in a recent report, forecasted FY26 wholesale volume growth of 1–4 per cent, supported by steady demand, GST cuts, new model launches and sustained momentum.

The report said that during November three-wheeler sales in India grew 21.3 per cent to 71,999 units, two-wheeler sales jumped 21.2 per cent to 19,44,475 units.

It further stated that continued supportive policy reforms and improved market sentiments would drive this growth trajectory well into 2026.

Meanwhile, scooter sales grew a robust 29.4 per cent to 7,35,753 units, reflecting strong urban demand. Motorcycle sales increased 17.5 per cent to 11,63,751 units, supported by steady rural and semi-urban buying.