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Informist, Tuesday, Jan. 6, 2026

 

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--FADA: Dec total vehicle retail sales 2.03 mln units, up 14.6% on year
--FADA: Dec passenger vehicle retail sales 379,671 units, up 26.6% on yr
--FADA: Dec 2-wheeler retail sales 1.32 mln units, up 9.5% on year
--FADA: Dec CV retail sales 83,666 units, up 24.6% on year
--FADA: Dec 3-wheeler retail sales 127,772 units, up 36.1% on year
--FADA: Dec tractors retail sales 115,001 units, up 15.8% on year
--FADA: Apr-Dec total vehicle retail sales 21.78 mln units, up 10% on year
--FADA: PV inventory at 37-39 days in Dec, down by 7 days from Nov

      

NEW DELHI – Dealerships across India sold 2.03 million automobile units in December, up 14.6% on year partly due to continued positive sentiment generated by the cut in goods and services tax rates and increased pre-buying ahead of expected price revisions in January, the Federation of Automobile Dealers Associations said in a press release Tuesday. However, the growth momentum slowed significantly from November as retail sales fell 39% on month.

 

Dealerships sold 1.32 million two-wheelers in December, up nearly 10% on year but down almost 50% on month. "While demand stayed steady, the month was also shaped by select supply constraints and model-wise availability, with many customers advancing their purchase decisions due to impending price increases," FADA President C.S. Vigneshwar said in a statement. Sales of two-wheelers in 2025 grew 7% on year to 20.30 million units.

 

Retail sales of passenger vehicles grew 27% on year, but fell 4% on month, to 379,671 units in December. Dealers liquidated some of their stocks in December by offering attractive schemes and the availability of a better mix of models. Inventory level for passenger vehicles fell by seven days from November, to around 37-39 days in December. In 2025, retail sales of passenger vehicles grew almost 10% on year to 4.48 million units.

 

Commercial vehicles' retail sales in December grew nearly 25% on year, but fell almost 10% on month, to 83,666 units, with robust performance registered across categories, especially medium-duty vehicles. "The momentum was led by underlying economic activity, improved goods movement and sustained demand in the load segment, with MCV (medium commercial vehicles) growth particularly strong and LCVs/HCVs (light commercial vehicles/heavy commercial vehicles) also reporting healthy expansion," Vigneshwar said.

 

"Passenger carrier demand remained supportive as well. That said, we continue to flag financing turnaround time and approval selectivity as a friction point in parts of the market—something that needs sharper focus to sustain momentum," Vigneshwar said. Sales of commercial vehicles grew 7% on year to 1.01 million units in 2025.

 

Tractor sales in December increased around 16% on year but declined 9% on month to 115,001 units. In 2025, dealers sold 996,633 tractors, up 12% on year. Retail sales of three-wheelers grew 36% on year but fell around 5% on month to 127,772 units in December. Electric rickshaws, both passenger and goods carriers, registered robust on-year growth last month. In 2025, dealers sold 1.31 million three-wheelers, slightly over 7% on year.

 

In Apr-Dec, retail sales of automobiles grew 10% on year to 21.78 million units, with all segments registering a growth of nearly 10% on year, except construction equipment, whose sales fell 12%. 

 

Vigneshwar said 2025 was a year of two halves, with Jan-Aug seeing subdued demand for automobiles. The other half saw rapid growth in sales as the festival season coincided with the new goods and services tax regime with lower rates. "The turning point came from September onwards, when the landmark GST 2.0 rate rationalisation--including meaningful reductions for mass segments like small cars, two-wheelers (with up to 350-cc engine), three-wheelers and key commercial categories--improved affordability and lifted sentiment, leading to a clear upshift through Sept–Dec," FADA said.

 

The pick-up in rural automobile sales seen in October and November moderated in December. Of the overall sales, urban India accounted for around 46%, while rural India accounted for a little over 54%. This is a change from November, when rural India formed 59% of the overall sales. Two-wheelers, which account for a bulk of the automobiles sold in India, mirrored the overall trend in December.

 

In passenger vehicles, the urban-rural sales mix remained largely unchanged in the final four months of 2025. Urban India continued to account for around 59% of passenger vehicles sold in India in December, while rural India accounted for the rest.

 

OUTLOOK

According to a FADA survey of around 71?alers, retail sales are likely to grow in January. "January is likely to be two-paced—a seasonally softer first half, followed by a stronger second half as the "lean" phase ends and buying typically picks up post Makar Sankranti/Pongal and into the marriage season, further aided by ongoing enquiries and booking pipelines," the dealer body said.

A relatively larger chunk of dealers surveyed by FADA, around 75%, have pencilled in growth expectations for the next three months. "Rural tailwinds look constructive as official updates show rabi sowing is tracking ahead of last year, and IMD's forecast of a colder January is expected to be favourable for key winter crops--both of which can improve cash flows and confidence," FADA said.  End

 

Reported by Anand JC

Edited by Tanima Banerjee

 

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