FADA Data: Vehicle Sales Rise In 2025 As Demand Picks Up In Second Half

India’s automobile retail industry closed 2025 with steady growth across most segments, aided by a strong recovery in the second half of the year, industry body Federation of Automobile Dealers Associations. According to FADA data, total vehicle retail sales stood at 28.16 million units in 2025, registering a year-on-year growth of 7.71 per cent. The association described the year as a “two-half year,” with demand remaining muted until August before gathering momentum from September onwards. FADA said cautious consumer spending and selective financing approvals weighed on sales during the January–August period. However, demand improved sharply following policy measures such as GST 2.0 rate rationalisation, which reduced the tax burden on mass-market vehicles including small cars, two-wheelers, three-wheelers and select commercial vehicles. This led to a sustained rise in retail activity during the September–December quarter.