Automobiles – Monthly Update – 2025 concludes on a strong note
Published on 02 Jan 2026
December wholesale numbers came in very strong across all segments, keeping the industry buoyed. Better Kharif harvest, Rabi acreage and water reservoir levels led to improved rural sentiments and retail sales. Most PV OEMs reported their best-ever quarterly or CY sales as GST benefits combined with year-end discounts improved affordability. 2Ws grew stronger than expected as the inventory was lean after an unanticipated retail demand in Oct-Nov’25. Tractors saw solid growth with govt. policy support and state subsidies, with the momentum expected to sustain in coming months. LCVs saw good growth but MHCVs outperformed as replacement demand was seen with customers gradually moving to higher tonnage vehicles post GST cuts. Construction equipment (CE) remained under pressure albeit over a higher base in Dec’24, with sentiments visibly improved. Rebound in mining & construction activities after the extended monsoon and sustained demand from the core sectors & auto logistics are expected to sustain an upcycle in CVs and improve CE sales.
