India’s passenger vehicle (PV) market maintained stable demand in December 2025, with registrations reaching 378,736 units, according to the latest Retail Market Pulse report released by JATO Dynamics.
The report noted that while volumes moderated sequentially after the festive season, the overall market continued to demonstrate a positive year-on-year trajectory. The decline from 520,300 registrations in January 2026 to 415,300 units reflected a typical seasonal correction following a strong start to the year.
Commenting on the trend, Ravi Bhatia said the slowdown was expected after the festive peak and did not indicate weakening demand. He noted that interest in sport utility vehicles (SUVs) remained strong and that demand was increasingly expanding beyond metro cities.
Recent policy developments have also supported consumer sentiment. The government’s rationalisation and reduction of GST on select automotive categories has slightly improved vehicle affordability, particularly in price-sensitive segments. At the same time, the Reserve Bank of India Consumer Confidence Survey indicates gradual improvement in urban consumer sentiment and stable outlook in rural markets, providing a supportive environment for discretionary purchases such as passenger vehicles.
Among manufacturers, Maruti Suzuki retained its leadership position in the market, supported by its extensive portfolio across entry-level and compact vehicle segments. Tata Motors and Mahindra & Mahindra continued to strengthen their market positions, driven largely by strong demand for SUVs and new product launches.
Meanwhile, Hyundai Motor India maintained stable performance, while Toyota Motor Corporation benefited from growing consumer interest in hybrid vehicles. Volkswagen Group also recorded one of the strongest growth performances during the period, supported by recent model introductions.
In terms of popular models, the Tata Nexon remained among the top-selling vehicles in the market, followed by the Tata Punch, Maruti Suzuki Swift, Maruti Suzuki Baleno, and Maruti Suzuki Fronx. Other strong performers included the Maruti Suzuki Wagon R, Hyundai Creta, Hyundai Venue, Maruti Suzuki Brezza, and Maruti Suzuki Grand Vitara.
SUVs continued to dominate India’s PV market, accounting for more than half of total vehicle registrations. Hatchbacks remained important in value-driven segments, while sedans and multi-purpose vehicles (MPVs) maintained steady but niche demand.
In terms of powertrain preferences, petrol and diesel vehicles still accounted for the majority of registrations. However, hybrid and electric vehicles are gradually expanding their share, particularly in urban markets.
Geographically, demand growth was more pronounced in urban and rural areas compared with metro cities. Among major urban markets, Delhi, Bengaluru, and Pune recorded the highest vehicle registrations. At the state level, Maharashtra, Gujarat, and Tamil Nadu led the market in overall registrations.
The report also highlighted that vehicles from Japanese manufacturers accounted for the largest share of registrations in India, followed by Indian and Korean automakers.
Looking ahead, analysts expect India’s passenger vehicle market to remain stable in early 2026, supported by moderate economic tailwinds, continued SUV demand, and the launch of new vehicle models. According to JATO Dynamics, growth is gradually becoming more balanced across regions and segments, contributing to a more resilient automotive market structure.
