Tax relief helps carmakers clock record sales in 2025

Tata Motors pips Hyundai

Market leader Maruti Suzuki reported a 2.8% growth in sales to 18.4 lakh vehicles in 2025, and remained India’s top passenger vehicle exporter for the fifth consecutive year, shipping just under 4 lakh vehicles. Maruti’s senior executive officer, marketing & sales, Partho Banerjee, said demand picked up sharply in smaller towns and cities after the GST cuts, with traction among first-time buyers improving, especially for small cars such as Alto and WagonR. He also expects the momentum to continue in 2026. “In times to come, the tailwinds, which are there right now, will continue, and if in the next year the monsoon is good, there is no reason why the auto industry should not be growing at a rate of 6-7%.” Mahindra & Mahindra closed 2025 with its highest-ever volumes in SUVs, which now account for 56% of total passenger vehicle sales. The fourth quarter of 2025 (Oct-Dec) saw strong sales as GST was slashed and rains during monsoon helped income levels. Govt’s I-T relief in Feb also helped increase purchasing power, industry executives said.