FADA: India's Auto Retail Sales Soar 7.71% in 2025, Driven by GST 2.0

• India's automobile retail sales surged 7.71% to 2.81 crore units in 2025, up from 2.61 crore in 2024, as per FADA.
• Passenger vehicle sales grew 9.7%, two-wheelers by 7.24%, three-wheelers by 7.21%, and commercial vehicles by 6.71%.
• A subdued start to 2025 (Jan-Aug) was overcome by the landmark GST 2.0 rate rationalization from September, boosting affordability and sentiment.
• Electrification (EVs in 2W, PV, CV, 3W) and CNG adoption (PV, CV) marked a diversified mobility mix in 2025.
• FADA predicts an upbeat retail outlook for early 2026, supported by GST 2.0 sentiment, festivals, rural tailwinds, and potential tax relief.

Why It Matters: India's auto retail sales saw significant growth in 2025, fueled by GST 2.0 and positive market sentiment.