Indian car sales just smashed records in December 2025
Car sales in India soared by nearly 27% last month—the biggest jump all year—reaching a record 399,216 units.
This spike came after the government slashed taxes on SUVs and small cars, making new rides a lot more tempting.
Festive vibes and tax cuts drive big growth
The October-December quarter saw dispatches climb 21% to an all-time high of 1.28 million cars, fueled by festive shopping season buzz.
For the whole of 2025, car sales grew by 5%, outpacing last year's numbers.
Expectations shift as momentum continues
With these strong results, brokerages like Nomura and Elara Capital have boosted their auto sector growth forecasts for next year to 8%, way up from earlier estimates of just 1-2%.
Automakers are feeling optimistic too, expecting new models and ongoing demand to keep the momentum rolling into the next quarter.