Mumbai: Domestic passenger vehicle (PV) wholesales rose sharply by around 26 per cent year-on-year in December, driven by sustained post-GST demand, year-end discounts and advance purchases ahead of planned price hikes by automakers.

Industry data showed that manufacturers dispatched about 4.05 lakh passenger vehicles to dealers in December, compared with nearly 3.23 lakh units in the same month last year. Buyers accelerated purchases ahead of January price increases, contributing to the strong month-end performance.

For the full calendar year 2025, passenger vehicle wholesales increased 5.7 per cent year-on-year to a record high of around 4.55 million units. December dispatches alone rose 26.2 per cent to 4,07,497 units, up from 3,22,965 units a year earlier.

Industry executives said overall annual growth lagged the sharp December surge as demand remained muted in the first half of the year, before gaining momentum following the goods and services tax (GST) rationalisation announced in September.

Several carmakers reported healthy growth, with some posting their best-ever December sales, registering increases of up to 37 per cent. SUV penetration rose to 55.8 per cent of total passenger vehicle sales in 2025, compared with 53.8 per cent in 2024, while the small car segment showed early signs of recovery after the GST rate cut.

“We need to split 2025 into two halves, a pre-GST and the post GST. it is a combination of these things which has really pepped up the market from the month of October onwards,” a senior industry official said.

Ratings agency ICRA, in a recent outlook, projected wholesale volume growth of 1 to 4 per cent in FY26, supported by steady demand, GST reductions, new model launches and sustained market momentum.

The agency noted that in November, three-wheeler sales in India rose 21.3 per cent to 71,999 units, while two-wheeler sales jumped 21.2 per cent to 19,44,475 units.

Scooter sales grew a robust 29.4 per cent to 7,35,753 units, reflecting strong urban demand, while motorcycle sales increased 17.5 per cent to 11,63,751 units, backed by steady rural and semi-urban buying.

ICRA said continued policy support and improving consumer sentiment are expected to drive growth across the automotive sector well into 2026.

IANS