NEW DELHI, Jan 3 : India’s automobile industry wrapped up 2025 on a firm footing, supported by broad-based sales growth across key segments in December.
Strong consumer demand, improving economic conditions, and steady performance by leading manufacturers helped the sector close the year on a positive and resilient note.
Passenger vehicle makers reported healthy momentum in the final month, driven by sustained demand for compact cars, utility vehicles and SUVs. Urban markets continued to show strength, while improving rural sentiment also supported higher sales volumes.
Several manufacturers recorded their best-ever December performance, reflecting renewed buyer confidence and a steady flow of bookings.
The commercial vehicle segment also performed well, aided by increased infrastructure spending, construction activity and higher demand from the logistics sector. Sales of trucks and buses picked up as fleet operators expanded capacity to meet growing freight and mobility needs.
The rise in public and private investment helped support demand throughout the second half of the year.
Two-wheeler sales remained on an upward trend, particularly in the motorcycle segment, as rural demand improved and new product launches attracted buyers. Tractor sales also showed growth, indicating a positive outlook in the agricultural sector and better farm incomes.
Industry experts attributed the strong year-end performance to multiple factors, including stable macroeconomic conditions, controlled inflation, improved availability of financing and better supply chain stability.
Festive season demand and year-end buying also contributed to the momentum seen in December.
The strong close to 2025 has strengthened expectations for continued growth in 2026. With rising focus on electric mobility, alternative fuels, and technological upgrades, the Indian auto industry is expected to build on its current momentum.
Overall, the sector’s performance in December highlights its resilience and reinforces its role as a key driver of manufacturing and economic growth in the country.(UNI)
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