Auto sector sees strong demand in December, thanks to 4-wheelers
What's the story
The Indian automotive market witnessed robust demand in December 2025, as per the latest VAHAN registration data. The overall registrations from December 1-28 rose by a healthy 9% year-on-year. This growth was mainly driven by passenger vehicles (PV), commercial vehicles (CV), and three-wheelers. However, two-wheelers continued to lag behind their four-wheeler counterparts during this period.
Segment performance
Passenger and commercial vehicles lead growth
Passenger vehicle registrations are expected to grow by 15% year-on-year, while commercial vehicle registrations could see a nearly 16% increase. However, two-wheeler registrations are likely to see a modest rise of just about 4%. This indicates that the recovery in rural and mass-market segments is still gradual. Three-wheelers are expected to be the star performers with an estimated surge of almost 30% from last year.
Market dynamics
Two-wheeler segment shows mixed trends
The two-wheeler segment witnessed mixed results in December. Eicher Motors and TVS Motor continued to outperform the industry, gaining market share. However, Hero MotoCorp emerged as the biggest underperformer with a year-on-year decline in registrations. Bajaj Auto is likely to report flat registrations for December, indicating pressure on its domestic two-wheeler portfolio. This data highlights that while premium motorcycles are doing well, mass-market commuter demand is yet to show a decisive rebound.
Market trends
Strong demand for passenger and commercial vehicles
Passenger vehicle manufacturers are expected to see high single-digit to low double-digit registration growth. This is mainly due to sustained demand for SUVs and improved supply chains. Commercial vehicle makers are also likely to achieve double-digit growth, driven by infrastructure spending, healthy freight movement, and replacement demand.
Market split
Electric 2-wheelers show sharp divergence among players
The electric two-wheeler (E2W) segment witnessed a sharp divergence among players in December. Ather Energy stood out with a strong 40% rise in registrations from last year, reflecting improved product traction and distribution expansion. Ola Electric's underperformance is likely to continue with an estimated decline of nearly 50% year-on-year in December.