TL;DR
The Indian auto industry witnessed substantial growth in 2025 and Q3 FY26, with record-breaking sales in passenger vehicles and a strong recovery in the two-wheeler segment, driven by domestic demand and increased exports.
India's automotive industry experienced robust growth in 2025, with total domestic vehicle sales across all segments reaching approximately 2.68 crore units, marking a 5.1% increase over 2024. The passenger vehicle segment recorded its highest-ever sales of 44.90 lakh units in calendar year 2025. This strong performance was further highlighted in the October-December 2025 quarter (Q3 FY26), where total domestic vehicle sales surged by 17.6% year-on-year to 7.48 million units.
The two-wheeler segment demonstrated significant recovery, crossing the 20-million-unit mark in 2025 with 20.50 million units sold, and achieving its highest-ever third-quarter sales of 5.70 million units. This growth was largely driven by urban demand and supported by policy measures such as the implementation of GST 2.0, improved vehicle affordability, and increased household disposable income. Exports also saw double-digit growth, with passenger vehicle exports rising by 16.0% and two-wheeler exports hitting a record high of 24.2%.
