GST Reforms, festive demand push passenger vehicle dispatches to record high in 2025: SIAM

The Society of Indian Automobile Manufacturers (SIAM) has said that passenger vehicle dispatches from companies to dealers raced to the highest ever sales mark in a calendar year in 2025, driven by strong festive-season demand as goods and services tax (GST) reforms led to lower prices. It said overall passenger vehicle wholesales rose 5% year-on-year to 44,89,717 units last year, compared with 42,74,793 units in the 2024 calendar year. Utility vehicle dispatches stood at 29,54,279 units last year, up 7% as compared with 27,49,932 units in 2024. Passenger car wholesales edged up to 13,79,884 units, while van dispatches increased by 1% last year compared with the 2024 calendar year.

The three-wheeler and commercial vehicle segments also recorded their highest-ever dispatches in a calendar year in 2025. Three-wheeler dispatches rose to 7,88,429 units last year, up 8% as compared to 7,28,670 units in 2024. Similarly, commercial vehicle dispatches stood at 10,27,877 units, up 8% against 9,54,051 units in the 2024 calendar year. Two-wheeler sales stood at 2,05,00,639 units last year, up 5% as compared with 1,95,43,093 units in 2024.

SIAM President Shailesh Chandra said 2025 proved to be a landmark year for the Indian auto industry. The year began with a subdued first half, and the industry continued to navigate supply-side challenges. With multiple structural policy reforms, including the income tax relief, successive repo rate cuts and the roll-out of GST 2.0, the foundation for a positive demand environment. He added that the reduction in GST rates made vehicles more affordable and gave fresh momentum to the sector. Further, he said the industry expects the good growth to continue into 2026, supported by stable macroeconomic conditions, improving affordability, and continued policy support.