TL;DR
The Indian auto industry begins 2026 on a high note with strong December 2025 sales figures and an optimistic growth forecast across all vehicle segments.
The Indian automotive industry has commenced 2026 with a positive outlook, fueled by robust December 2025 sales and optimistic growth projections. TVS Motor Company reported an impressive 50% year-on-year growth in total sales for December 2025, reaching 481,389 units, with significant contributions from both scooter and electric vehicle segments.
Hero MotoCorp also demonstrated a solid performance with a 40-42.5% increase in wholesales. Analysts at Axis Securities maintain an optimistic outlook for the entire industry, including two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, and tractors, attributing this to demand recovery, potential GST rate reductions, and income tax relief.

