India's Vehicle Sales Soar 7.71% in 2025 Post-GST 2.0: FADA Report

• Vehicle retail sales in India surged 7.71% in 2025, reaching 2.81 crore units, driven by GST 2.0 rate cuts.
• Passenger Vehicles led growth at 9.7%, followed by two-wheelers (7.24%) and three-wheelers (7.21%).
• FADA President CS Vigneshwar noted 2025 as "a year of two halves," with demand picking up significantly from September after GST 2.0.
• GST 2.0 rate rationalisation improved affordability for mass-market segments, boosting consumer sentiment and recovery.
• EV and CNG adoption gained pace, and the outlook for early 2026 remains positive due to festive demand, rural sentiment, and supportive macro factors.

Why It Matters: GST 2.0 rate cuts significantly boosted India's vehicle retail sales in 2025, with a positive outlook for 2026.