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Indian Auto Sales Surge: 2026 Outlook Bright
2 Jan
Summary
- Indian auto industry sees double-digit growth in December 2025.
- Maruti Suzuki leads with 36.5% YoY growth and long waiting lists.
- New launches and GST cuts fuel positive outlook for 2026.
The Indian automotive sector finished 2025 on a high note, with most manufacturers reporting substantial year-on-year growth in domestic sales for December. This positive trend is attributed to a combination of factors including a GST rate cut, income tax rebates, and a repo rate reduction by the Reserve Bank of India.
Maruti Suzuki emerged as the top performer, achieving 36.5% growth in domestic sales, with substantial pending bookings leading to an average waiting period of 45 days. Mahindra & Mahindra secured the second position, reporting its highest-ever volumes in SUV and LCV segments. Tata Motors, though slipping to third, announced major product introductions, including petrol variants of Harrier and Safari, and the Sierra.
The industry looks forward to a prosperous 2026, with forecasts predicting 6-7% growth. This optimism is fueled by an improving economic outlook, rising consumer demand, and a strong pipeline of new vehicle launches, including the Maruti Suzuki eVitara and Renault Duster.
