Robust utility vehicles demand drives 27% growth in PV dispatches in December: SIAM

Society of Indian Automobile Manufacturers (SIAM) has said that passenger vehicle (PV) dispatches from companies to dealers increased 27% year-on-year in December 2025, as demand remained robust for utility vehicles. Total passenger vehicle sales stood at 3,99,216 units in December, up 26.8% as compared with 3,14,934 units in the year-ago period.

It said two-wheeler sales witnessed a 39% on-year rise to 15,41,036 units in December, as compared to 11,05,565 units in the year-ago period. Total three-wheeler sales stood at 61,924 units in December, up 17% against 52,733 units in December 2024.

On sales outlook, the industry boy stated that the industry enters Q4 of FY26 with firm momentum after strong double-digit growth across all vehicle segments in late 2025, and expects steady wholesale and retail volumes traction through the quarter.

The year-end sales push, healthy pipeline of bookings, and the full transmission of 2025 interest rate cuts on loans are expected to support demand, pointing to continued growth into 2025-26, underpinned by stable macroeconomic conditions and supportive policy reforms of the Government of India.

It said while remaining watchful of geopolitical developments, the industry expects FY26 to close on a positive growth trajectory, with policy-led tailwinds firmly in place, sustaining the robust performance witnessed in recent years.

India’s automobile retail sales rose 7.71% to 2.81 lakh units in calendar year 2025, helped by GST rate rationalisation in the second half of the year that improved affordability, industry body Federation of Automobile Dealers Associations (FADA) said in its outlook. They further added, “Demand should stay supported by the post-GST 2.0 sentiment, a packed calendar of festivals and the marriage season, and typical financial-year-end buying,”