Two-Wheelers & SUVs Power India’s Strongest Auto Year Yet In 2025

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Two-wheelers played a defining role in 2025 as sales during Q3 FY2025-26 increased notably by 16.9 per cent on a year-on-year basis to 5.70 million units

The automotive industry ended the calendar year 2025 in a record-setting way by delivering its best quarterly and annual performance to date. As per SIAM data, the October–December period emerged as the strongest Q3 ever for multiple vehicle segments supported by festive season demand, easing interest rates and policy-led improvements in vehicle affordability.

Two-wheelers played a defining role in this growth phase. Sales during Q3 FY2025-26 increased notably by 16.9 per cent on a year-on-year basis to 5.70 million units – making it the highest Q3 performance on record for the segment. For the full year, two-wheeler volumes crossed 20.50 million units by registering a 4.9 per cent increase over 2024.

December stood out with dispatches climbing 39.4 per cent to 15,41,036 units due to high urban demand and festive buying of scooters and motorcycles. Exports further complemented the total numbers particularly in the two-wheeler space. Overseas shipments expanded by 24.3 per cent during Q3 and by 24.2 per cent over the full year period.

Also Read: 4 Brand New SUVs Launching In India In The Next 2 Months

The Q3 FY2025-26 sales jumped 20.6 per cent year-on-year to 12.76 lakh units – the highest ever third quarter volume for the segment. The passenger vehicle sales in calendar year 2025 touched 44.90 lakh units with a 5.0 per cent annual increase. The December dispatches surged 26.8 per cent to 3,99,216 units as well as the year was wrapped on a positive note.

Exports remained on an upward trajectory as well growing 11.7 per cent in Q3 and 16.0 per cent across the year to 8.63 lakh units. The three-wheeler category also recorded its best year yet. The Q3 volumes rose 14.0 per cent on a year-on-year basis to 2.15 lakh units while full-year sales reached a record 7.88 lakh units – up 8.2 per cent.

Also Read: MG, Nissan And Volkswagen To Launch New Premium SUVs By March

The December sales increased 17.4 per cent to 61,924 units complemented by improved financing access and rising demand for passenger mobility solutions. Commercial vehicles strengthened the overall industry performance. Q3 FY2025-26 volumes grew 21.5 per cent year-on-year to 2.90 lakh units – the highest Q3 ever for the segment. Annual CV sales closed at 10.28 lakh units in 2025 – a 7.7 per cent increase and an all-time high.

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2W Market Crosses 2 Crore Sales Mark In 2025, Exports Hit Record High

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Hero MotoCorp maintained its leadership position in CY 2025 by dispatching 57.5 lakh units as it finished ahead of TVS Motor Company

The domestic two-wheeler market delivered a measured yet encouraging performance in calendar year 2025 – managing to cross the 2 crore sales threshold after several subdued years. SIAM data indicates that total domestic volumes rose to over 2 crore units with a 5 per cent improvement compared to the same period of twelve months the previous year.

Despite this progress, the industry continues to operate below its historic high of 2.1 crore units achieved in 2018. While domestic demand strengthened, overseas markets played a far more decisive role in shaping the year’s outcome. Two-wheeler exports posted an appreciable growth of 24.2 per cent – reaching an all-time peak of 49.4 lakh units.

The volume surge was largely attributed to renewed demand across African markets, consistent buying interest from South Asia and revival in global motorcycle consumption, etc. Hero MotoCorp maintained its leadership position by dispatching 57.5 lakh units during the recently concluded calendar year. Growth, however, remained modest at 2 per cent for the brand.

Also Read: Skoda-VW Post Highest Ever Domestic Sales Of 1.17 Lakh Units In 2025

TVS Motor Company stood out for its pace by recording the fastest expansion among major players with a 15.7 per cent jump in volumes to 39.8 lakh units.Consumer demand patterns in 2025 revealed a different influence. Although rural markets remained stable, cities emerged as the primary growth contributors. Scooter sales, in particular, outpaced motorcycles in urban centres benefiting from improving disposable incomes and enhanced financing options.

Policy measures such as GST 2.0 tax reduction, income tax relief and a series of repo rate reductions improved affordability across segments. These factors, combined with an auspicious festive season, especially in metropolitan regions provided support to retail demand in the second half of the year. The 2026 CY is expected to see an influx of new launches across segments.

Also Read: Bajaj Clocks 3.69 Lakh Unit Sales In Dec 2025 With Exports Leading The Way

With growing appetite for adventure motorcycles and expanding entry-level volume based segments in India, the momentum could serve as a basis for consistent retail figures throughout this year. Across passenger vehicle and two-wheeler industries, the emphasis on exports has been on an all-time high and it will lead to more products being introduced with global standards locally as well.

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VinFast Crosses 1000 EV Sales Milestone In India Within Four Months

VinFast surpasses 1000 EV sales in India quickly after market entry

Vietnamese electric vehicle manufacturer VinFast has announced that it has surpassed cumulative sales of 1000 units in India, roughly four months after entering the market. The milestone highlights the brand’s early traction in a segment currently dominated by established players.

Sales performance and market positioning

VinFast registered around 830 retail units during a three-month span in 2025. Sales momentum has continued into 2026, with more than 200 electric SUVs delivered so far this year. On the back of these results, the brand has become the fourth significant EV-focused player in India, following Tata Motors, MG Motor and Mahindra.

Launch strategy and product lineup

The company formally commenced operations in India in September last year with the VF 6 and VF 7 midsize electric SUVs. The VF 6 is equipped with a single-motor setup rated at 201 HP and 310 Nm, powered by a 59.6kWh battery that delivers a claimed range of up to 480 km.

The VF 7 is offered with single- and dual-motor configurations and two battery sizes: 59.6kWh and 70.8kWh. Depending on the variant, the SUV also claims a driving range of up to 480 km.

Local assembly and manufacturing capacity

VinFast EVs for the Indian market are assembled in Thoothukudi, Tamil Nadu. The facility currently supports an annual capacity of 50,000 units, with the infrastructure in place to scale production to approximately 1,50,000 units per year as demand grows.

Looking ahead

VinFast’s early sales performance indicates initial acceptance among Indian EV buyers, though longer-term success will depend on competitive pricing, charging infrastructure growth and broader consumer confidence in newer entrants. Further launch phases and additional products are expected as the brand seeks to expand its footprint.

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Mercedes-Benz Delivers 19,007 Units In 2025; GLS SUV To Be Locally Made

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Mercedes-Benz India posted 19,007 units in 2025 which is slightly lower than the 19,565 units it managed the previous calendar year; enters the list of top 5 markets globally

Mercedes-Benz India finished the period between January and December 2025 with total deliveries of 19,007 units which is slightly lower than the 19,565 units it managed the previous calendar year. Despite the slight volume dip, the luxury carmaker recorded its best-ever annual performance in terms of revenue representing the growing contribution of high-value models and premium range.

The standout performance came from the S-Class, Mercedes-Maybach models and AMG derivatives. The range-topping portfolio grew by 11 per cent year-on-year and accounted for 25 per cent of overall sales showing consistent demand for flagship luxury products from the German auto major. Consumers continued to gravitate towards exclusivity, bespoke features and high-performance offerings too in India.

The AMG performance division delivered an especially strong showing by registering 34 per cent year-on-year growth in CY2025. The surge points the finger towards a growing appetite for high-performance luxury cars in the country with AMG models comprising sedans, SUVs and the legendary G-Class luring in aspirational buyers craving performance.

Mercedes-Benz’s battery electric vehicle (BEV) portfolio also maintained its upward trajectory – recording 12 per cent growth on a year-on-year basis. BEVs now account for 20 per cent of all top-end Mercedes-Benz sales in India. Notably, 70 per cent of BEVs sold in 2025 belonged to the top-end segment – priced between Rs. 1.25 crore and Rs. 3.1 crore. The lineup includes the EQS SUV, EQS Sedan, Mercedes-Maybach EQS SUV and the all-electric G580.

Among individual models, the long wheelbase E-Class continued its dominance – retaining its position as India’s most desired and highest-selling luxury car. Strong brand loyalty and rear-seat-focused luxury ensured it consistently outperformed its segment rivals. On the electric front, the EQS SUV emerged as Mercedes-Benz’s highest-selling luxury BEV in the Indian market.

As for the segments, the entry-level luxury, core and top-end models contributed 13 per cent, 62 per cent and 25 per cent respectively to overall CY2025 sales. The sales of sedans are led by the C-Class, LWB E-Class, S-Class and Mercedes-Maybach S-Class. SUVs also delivered good volumes buoyed by the GLA, GLC, GLE, GLS, Mercedes-Maybach GLS and the AMG G63.

However, the entry-level luxury portfolio declined by 20 per cent year-on-year – reducing its share to 13 per cent. the local production of the Mercedes-Maybach GLS; will be the first market outside USA to start the local production of this highly desirable luxury SUV. Mercedes-Benz India has confirmed plans to launch 12 new products in India this year including the much-anticipated CLA electric sedan that will debut the new MB.OS operating system.

The brand has also announced local production of the Mercedes-Maybach GLS at its Pune facility – making India the first market outside the United States to manufacture the popular luxury SUV. The strategy builds on a solid performance in calendar year 2025 which led to India entering the list of top 5 markets for the brand.

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JSW Motors To Enter PV Market With Plug-In Hybrid SUV In 2026

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JSW will reportedly enter PV market with a premium plug-in hybrid SUV on its own midway through 2026 in India

JSW Motors is preparing to make its standalone entry into domestic passenger vehicle space with the launch of a premium plug-in hybrid electric SUV in June 2026 and it will be a separate identity from its existing JSW MG Motor India joint venture. To be positioned in the premium segment, the upcoming SUV is expected to carry a price tag of around Rs. 45 lakh reportedly.

The new automotive brand places JSW Motors in direct contention with luxury automakers including BMW, Audi and Mercedes-Benz – particularly in a segment where plug-in hybrid options remain limited. Unlike mass-market hybrids, the technology combines electric-only driving capability with long distance flexibility that the PHEVs are renowned for.

Manufacturing for the new model will take place at JSW Motors’ upcoming facility in Chhatrapati Sambhaji Nagar, formerly Aurangabad, in Maharashtra. The plant is being developed to support future electrified powertrains and will play a central role in scaling the company’s hybrid and electric plans for the future.

Also Read: MG Windsor Becomes India’s Best-Selling Electric Car In 2025

Representational

On the technology front, JSW Motors is in advanced discussions with several international automotive firms for partnerships. The potential collaborations are expected to cover mobility solutions including battery electric vehicles, plug-in hybrids and range-extended electric vehicles. Multiple technologies are currently under evaluation and at least one tie-up could be formalised in the near future to support product development and localisation.

The new venture builds on the group’s recent automotive experience through JSW MG Motor India in which JSW holds a 51 per cent stake following the restructuring of MG’s India operations a few years ago. The JV’s EV sales rose 136 per cent in 2025 to 51,387 units – giving the brand close to a 30 per cent share in India’s electric car market.

Also Read: JSW MG Motor Posts 70,500+ Units In CY2025, Windsor EV On Top

Representational (Sportage PHEV)

JSW Motors’ upcoming SUV is being developed as a distinct offering as it looks to establish its own identity, dealer network and product philosophy with the first set of dealerships expected to be operational closer to launch. If executed well, the June 2026 launch timeframe could give India a new domestic player in a space currently dominated by global luxury marques.

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Car Exports Grow In FY26 As Maruti Suzuki Leads Hyundai & Nissan

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Maruti Suzuki remained the undisputed leader in exports as it shipped 3,08,237 units overseas to finish ahead of Hyundai and Nissan

The export space posted a healthy rise in FY26 so far supported by strong overseas demand for several models produced in India. According to SIAM data, car exports increased by 13 per cent during the April–December 2025 period with total shipments reaching 6,70,930 units compared to 5,78,091 units in the corresponding period last year.

Maruti Suzuki India remained the undisputed leader in exports by comfortably topping the charts during the nine-month period. The country’s largest carmaker shipped 3,08,237 units overseas – accounting for a significant share of total passenger vehicle exports. Maruti’s export success continues to be driven by its compact cars and SUVs which appeal to price-sensitive markets across Africa, Latin America and parts of Asia.

The brand also recorded its highest ever export tally of over 1.10 lakh units in Q2 FY26 courtesy of demand for e Vitara, Baleno and Jimny. Hyundai Motor India retained second position, exporting 1,48,428 units between April and December 2025. The Chennai facility remains one of its most important export bases globally supporting multiple right-hand-drive regions.

Also Read: Maruti Suzuki Posts Highest Ever Export Tally Of 1.10 Lakh+ Units In Q2 FY26

Hyundai Creta

Rank	OEM	FY2026 Sales (April to Dec Period)
1	Maruti Suzuki	3,08,237
2	Hyundai	1,48,428
3	Nissan	65,146
4	Volkswagen	31,522
5	Toyota Kirloskar Motor	30,358

Nissan secured the third spot in the export rankings – dispatching 65,146 units during the period. The Magnite continues to anchor Nissan’s export operations from India with the compact SUV being shipped to a wide range of global destinations. India has become central to Nissan’s strategy for emerging markets and the company is planning to go big on its revival phase over the next few years.

The upcoming arrival of the Gravite compact MPV and Tekton midsize SUV holds plenty of significance for its export plans as well. Volkswagen India and Toyota Kirloskar Motor completed the top five exporters. While their volumes trail the top three, both brands continue to leverage India as a regional production and export base.

Also Read: SUVs Lead India’s Export Chart Surpassing Passenger Cars For The 1st Time

Volkswagen’s locally manufactured models and Toyota’s export strategy have ensured consistent shipments to select global markets. The German brand’s locally made vehicles based on the MQB A0 IN platform have been well received in local as well as international arena. The overall rise in exports shows that the India-made vehicles especially SUVs have seen increased takers in recent times.

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Top 10 7-Seaters Dec 2025 – Ertiga, Bolero, Innova, Fortuner, XUV 7XO

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In December 2025, Maruti Suzuki Ertiga finished on top of the 7-seater sales charts ahead of Mahindra Scorpio and its sibling Bolero, Toyota Innova, etc

The 7-seater vehicle segment has been garnering appreciable sales numbers in recent times and the month of December 2025 was no different. Maruti Suzuki, Mahindra and Toyota once again emerged as key players while a few models delivered standout year-on-year growth. The XUV 7XO has made its first entry into the top ten as well.

The Maruti Suzuki Ertiga retained its crown as the highest-selling 7-seater in the country. With 16,586 units dispatched in December 2025, the MPV posted a modest 3 per cent year-on-year growth. Its consistent performance indicates the Ertiga’s strong value proposition complemented by good fuel economy and the brand’s reliability in personal and fleet segments.

Mahindra followed in the next two positions with its strongest nameplates. The Scorpio secured second place with sales of 15,885 units enduring a healthy 30 per cent increase compared to December 2024 as the combined sales of Scorpio N and Scorpio Classic have been impressive consistently over the years.

Also Read: 4 New Mahindra SUVs Waiting To Launch In 2026 In India – Key Info

Rank	Top 10 7-Seaters (YoY)	December 2025 Sales	December 2024 Sales
1	Maruti Suzuki Ertiga (3%)	16,586	16,056
2	Mahindra Scorpio (30%)	15,885	12,195
3	Mahindra Bolero (79%)	10,611	5,921
4	Toyota Innova (2%)	9,90	9,700
5	Kia Carens (40%)	3,681	2,626
6	Toyota Fortuner (34%)	2,961	2,206
7	Maruti Suzuki XL6 (10%)	2,744	2,487
8	Renault Triber (40%)	2,324	1,659
9	Tata Safari (4%)	1,446	1,385
10	Mahindra XUV 7X0 (-32%)	971	–

Meanwhile, the Bolero delivered one of the highlighting performances on the list – registering a massive 79 per cent year-on-year growth with 10,611 units sold. The Bolero’s surge points the finger at its continued relevance in different market tiers. The Toyota Innova lineup remained a pillar of consistency for the Japanese auto major as well.

With combined sales of 9,901 units, including the Crysta and Hycross, the Innova posted a 2 per cent increase year-on-year. The Kia Carens and Toyota Fortuner also posted notable gains. The Carens recorded sales of 3,681 units with a notable 40 per cent growth while the Fortuner clocked 2,961 units – up 34 per cent from the previous year.

Also Read: 4 Brand New SUVs Launching In India In The Next 2 Months

The Maruti Suzuki XL6 and Renault Triber added depth to the list. The XL6 sold 2,744 units, achieving a 10 per cent year-on-year rise while the Triber ended the final month of the year with 40 per cent growth – supported by its competitive pricing and practical packaging. Tata Safari followed with 1,446 units. Rounding off the top ten, the Mahindra XUV 7XO recorded 971 unit sales.

Source

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