India’s automobile retail industry recorded a growth of 7.71 per cent in calendar year 2025 (CY’25), supported by improving rural demand, steady recovery under the GST 2.0 framework and rising adoption of electric vehicles (EVs), according to data released by the Federation of Automobile Dealers Associations (FADA).
The growth reflects a broad-based recovery across vehicle segments, with passenger vehicles, two-wheelers and commercial vehicles showing improved traction compared to the previous year. Industry experts attribute the positive momentum to easing inflationary pressures, better monsoon performance boosting rural incomes, and increased consumer confidence.
Electric mobility continued to gain ground during the year, with EV sales rising steadily across both two-wheeler and passenger vehicle categories. Improved charging infrastructure, wider model availability and supportive government policies played a key role in accelerating EV adoption.
FADA noted that the implementation of GST 2.0 measures helped streamline taxation processes and improved liquidity in the retail ecosystem, benefiting dealers and manufacturers alike. Additionally, festive season demand and year-end offers contributed to higher showroom footfalls.
Looking ahead, the auto retail body expressed cautious optimism for early 2026, citing stable macroeconomic indicators, sustained rural demand and continued policy support for clean mobility as key growth drivers.
The industry is expected to focus on inventory management, customer-centric financing options and EV readiness as it prepares for the next phase of expansion in the Indian automobile market.
