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Retail vehicle sales across all categories in India up 7.71% in 2025: FADA
Jan-07-2026

The Federation of Automobile Dealers Associations (FADA) has said that retail vehicle sales across all categories in India rose by 7.71% to 2,81,61,228 units in 2025, up from 2,61,45,445 units in 2024, with GST 2.0 helping overcome a subdued start to the year. It stated passenger vehicle (PV) retail sales stood at 44,75,309 units in 2025 as against 40,79,532 units in 2024, a growth of 9.7 per cent.

Similarly, two-wheeler (2W) sales also grew by 7.24 per cent at 2,02,95,650 units in 2025 as compared to 1,89,24,815 units in 2024. In 2025, three-wheeler retail sales were at 13,09,953 units as compared to 12,21,886 units in 2024, up 7.21 per cent. Commercial vehicles (CV) retail also witnessed a growth of 6.71 per cent at 10,09,654 units in 2025 as against 9,46,190 units in 2024.

FADA President CS Vigneshwar said that 2025 turned out to be a tale of two halves, with the period from January to August remaining subdued despite supportive macro cues such as direct-tax relief in the Union Budget and RBI's cumulative rate easing through 2025. During this phase, customers stayed value-conscious and financier approvals remained selective in pockets, resulting in uneven conversions across markets. 

Vigneshwar said ‘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 (up to 350cc), three-wheelers and key commercial categories, improved affordability and lifted sentiment, leading to a clear upshift through September-December.’


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