Auto demand stays strong in December, driven by 4-wheelers
What's the story
The Indian auto industry witnessed a robust demand in December 2025, according to data from the VAHAN registration system. The period from December 1 to December 28 saw a year-on-year (YoY) increase of 9% in registrations. This growth was primarily driven by strong performances across passenger vehicles (PV), commercial vehicles (CV), and three-wheelers. However, two-wheelers continued to lag behind their four-wheeler counterparts during this period.
Market leaders
Passenger, commercial vehicles lead the growth
Passenger vehicle registrations are expected to grow by 15% YoY, while commercial vehicle registrations could see a nearly 16% increase. This indicates a strong demand for these segments. However, two-wheeler registrations are only likely to see a modest growth of 4%, indicating that recovery in rural and mass-market segments is still slow. Three-wheelers are expected to lead with an almost 30% jump in registrations from last year.
Market fluctuations
Two-wheeler segment shows mixed trends
The two-wheeler segment showed mixed results in December 2025. Eicher Motors and TVS Motor outperformed the industry, gaining market share. However, Hero MotoCorp underperformed with a YoY decline in registrations. Bajaj Auto is expected 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 see a decisive rebound.
Vehicle performance
Passenger, commercial vehicles show strong demand
Passenger vehicle manufacturers are expected to report high single-digit to low double-digit growth in registrations. This is due to sustained demand for SUVs and improved supply chains. Commercial vehicle makers are also likely to deliver double-digit growth, driven by infrastructure spending, healthy freight movement, and replacement demand. These trends highlight a strong market for both passenger and commercial vehicles in December 2025.
E2W market
Electric 2-wheelers show contrasting trends
The electric two-wheeler (E2W) market also saw contrasting trends among players. Ather Energy stood out with over a 40% YoY rise in registrations, showing improved product traction and distribution expansion. However, Ola Electric is likely to continue its underperformance with an estimated nearly 50% YoY decline in registrations for December. These trends highlight the divergent performance of different players in the E2W space.