India's Auto Sales Soar 7.71% in 2025, Driven by GST 2.0 & Strong Demand

• India's automobile sector saw a robust 7.71% retail sales growth in 2025, reaching 2.81 crore units, up from 2.61 crore in 2024.
• Passenger Vehicles (PVs) led the surge with a 9.7% growth, hitting 44.75 lakh units, supported by new models and financing.
• Two-wheeler and three-wheeler segments also posted strong growth of 7.24% and 7.21% respectively, while Commercial Vehicles grew moderately at 6.71%.
• Sales, initially slow, gained significant momentum from September 2025 due to tax rate reductions under GST 2.0, boosting affordability.
• FADA reports positive dealer sentiment for early 2026, anticipating continued growth fueled by improving rural demand and macroeconomic factors.

Why It Matters: India's auto sector experienced significant growth in 2025, primarily driven by GST 2.0 and rising consumer confidence.