December 2025 turned out to be a strong month for Indian car makers, with sales jumping thanks to a surge in SUV demand, attractive discounts, and lower GST rates.
Overall Market Growth
Three of the four major listed manufacturers posted double‑digit year‑on‑year growth in vehicle dispatches. The boost came from:
- Higher demand for compact SUVs
- Healthy discount offers
- GST rate cuts making cars cheaper
- Seasonal buying during the marriage period
Mahindra & Mahindra
Mahindra shipped 50,946 passenger vehicles in December, up 23% from the same month last year.
- Remains the second‑largest passenger‑vehicle maker in India.
- Strong sales of utility vehicles (UVs) such as Brezza, Ertiga, Fronx, and others, which rose 32.64% YoY to 73,818 units.
Maruti Suzuki
Maruti, the market leader, recorded a 22.21% increase, selling 217,854 cars in December.
- Small‑car sales jumped to 14,225 units from 7,418 a year earlier, helped by GST rationalisation.
Tata Motors
Tata delivered 50,046 passenger vehicles, a 13.1% rise YoY.
- Electric‑vehicle sales climbed to 6,906 units, up 24.2% from the previous December.
Hyundai Motor India
Hyundai’s December dispatch fell to 42,416 units, down from November’s 50,340, but still posted a modest 6.6% growth compared with December 2024.
Industry Outlook
Brokerage firm Motilal Oswal says the GST cuts have revived demand across all vehicle segments, especially entry‑level models. Strong wholesale and retail sales suggest manufacturers will close 2025 with low inventory, which should support continued sales momentum into the next quarter.
- Discounts are expected to ease as demand stays firm.
- Motilal Oswal recommends Maruti Suzuki as its top pick in the passenger‑vehicle space, citing new launches and export growth.
- Mahindra also receives a positive nod due to rising tractor demand and utility‑vehicle sales.
- In the two‑wheeler market, TVS Motor is highlighted as a favorable name.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.