Indian carmakers’ sales to dealers jumped 26.8% in December, their biggest monthly rise of 2025, as tax cuts made several models more affordable and spurred demand, industry data showed on Tuesday.
Carmakers sold 399,216 units in the final month of 2025, the Society of Indian Automobile Manufacturers said. For the full year, sales grew about 5%, faster than 4.2% growth in 2024.
Car sales in the country are on a tear since the government in September implemented tax cuts that lowered the levy on sports utility vehicles with engine capacities over 1,500cc to 40% from 50% earlier and to 18% from 28% on small cars.
For the October-December quarter, car dispatches grew 21% to a record 1.28 million units, spurred by festive-period demand, considered an auspicious time for big-ticket purchases.
That has prompted brokerages to raise their sales growth estimates for the year to March 2026, with Nomura and Elara Capital expecting an 8% rise in car dispatches.
India’s top carmakers log December sales jump as tax cuts fuel demand
At the start of fiscal 2026, carmakers said they expect growth of just 1% to 2%, down from the previous year’s 2% climb, citing cooling demand and increased competition.
The carmakers have said they expect growth momentum to sustain in the final quarter of the fiscal year, led by interest in newly launched models.
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