Car sales in India have surged. In 2025, retail sales across all car segments increased by 7.71 per cent. Car sales had been moving at a slow pace from the beginning of the year, but sales gained momentum after the GST reduction, according to the Federation of Automobile Dealers Association (FADA).
In 2024, car sales were 2,61,45,445 units. In 2025, that number reached 2,81,61,228 units.
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Passenger vehicle sales have increased
Passenger Vehicle sales have shown significant momentum. Car sales increased by 9.7 per cent in one year, FADA reported.
Two-wheeler sales have also increased considerably. In one year, vehicle sales in this segment grew by 7.24 per cent. Three-wheeler vehicle sales increased by 7.21 per cent.
Commercial vehicle sales have also increased, though less compared to other segments. Commercial vehicle sales increased by 6.71 per cent over the past year.
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FADA President CS Vigneshwar stated that 2025 can be divided into two halves. From January to August, one kind of momentum was seen in the market. On the other hand, demand increased significantly in the market after GST reduction. Sales particularly increased for small cars and bikes below 350cc. Three-wheeler sales also increased. Meanwhile, demand for CNG and EV vehicles has also increased compared to before, FADA reported.
