TL;DR
The Indian auto industry is projected for double-digit growth in December 2025 across all segments, driven by favorable economic factors and strategic discounts, particularly for EVs.
The Indian automobile sector is poised for substantial expansion, with Nuvama Institutional Equities forecasting robust double-digit sales growth across all major vehicle categories for December 2025. This optimistic outlook is fueled by a combination of reduced GST, new product introductions, lower interest rates, and enhanced financing accessibility. The report projects significant year-on-year volume increases, with two-wheelers expected to rise by 22%, passenger vehicles by 21%, and commercial vehicles by 17%.
Leading players like TVS Motor, Eicher's Royal Enfield, Hero MotoCorp, Mahindra & Mahindra, and Maruti Suzuki are anticipated to drive this growth. The passenger vehicle market, encompassing cars and SUVs, is specifically forecast for a 21% rise in domestic sales. Mahindra & Mahindra’s automotive division is predicted to achieve a 29% growth, while Maruti Suzuki India is projected for a 23% increase. Manufacturers are strategically increasing discounts, particularly on electric vehicles (EVs), to attract buyers and sustain this momentum, reflecting a fundamental resilience in the Indian consumer market despite global cooling trends.
