Rural markets showed stronger performance than urban areas, reflecting improved farm incomes and rising consumer confidence. | Photo Credit: RAO GN/The Hindu

The 2025 festive season delivered a strong boost to India’s automobile industry, an ICRA report says. Two-wheeler (2W) sales surged 22%, while passenger vehicle (PV) sales rose 21% compared with the 2024 season, driven by GST cuts, rural demand, and attractive offers.

GST rationalisation reduced prices by up to 10%, enhancing affordability across segments. Rural markets outperformed urban regions, signalling improved farm incomes and rising consumer confidence. With financing support and favourable demand drivers, the industry appears poised for steady growth in FY2026 despite lingering challenges in sustaining post-festive momentum. Key trends:

Published on November 18, 2025