According to the data released by the Federation of Automobile Dealers Associations (FADA), India's auto retails delivered a confident close, with total retails at 2,81,61,228 units, registering a 7.71% Y-o-Y growth. The year, however, was a tale of two halves'Jan to Aug remained subdued despite supportive macro cues such as direct tax relief in the Union Budget and RBI's cumulative rate easing through 2025 . The turning point came from September onwards, when the landmark GST 2.0 rate rationalization'including meaningful reductions for mass segments like small cars, two-wheelers (up to 350cc), three-wheelers and key commercial categories'improved affordability and lifted sentiment, leading to a clear upshift through Sept'Dec. Category-wise, 2W grew 7.24%, PV rose 9.70%, CV expanded 6.71%, and Tractors posted 11.52%. Importantly, the year saw broad-based participation'urban retail grew 8.20% and rural 7.31%'and within PVs, rural demand was a standout, growing 12.31% versus 8.08% in urban markets, underlining the strengthening spread of personal mobility beyond metros. CY'25 also reinforced the transition underway'EV share moved up in 2W, PV, CV and remained dominant in 3W, while CNG strengthened its presence in PV and CV, signalling a more diversified mobility mix. December'25 proved to be a strong finish to the calendar year for auto retail. The industry retailed 20,28,821 vehicles, posting a healthy 14.63% Y-o-Y growth. In Two-Wheelers, retail was up 9.50% Y-o-Y. Commercial Vehicles witnessed a robust month, registering 24.60% Y-o-Y growth. Passenger Vehicles continued their positive run, up 26.64% Y-o-Y, with rural PV growth at 32.40% outpacing urban growth.

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