The quarter's performance contributed to calendar year 2025 sales of 44.90 lakh units for the January-December period, a 5.0% increase over 2024.
13 Jan 2026 | 276 Views | By Arunima Pal
The passenger vehicle segment recorded sales of 12.76 lakh units in the October-December quarter of 2025-26, marking a 20.6% increase compared to the same quarter in the previous year. This represented the highest third-quarter sales figure the segment had achieved.
The quarter's performance contributed to calendar year 2025 sales ...
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The passenger vehicle segment recorded sales of 12.76 lakh units in the October-December quarter of 2025-26, marking a 20.6% increase compared to the same quarter in the previous year. This represented the highest third-quarter sales figure the segment had achieved.
The quarter's performance contributed to calendar year 2025 sales of 44.90 lakh units for the January-December period, a 5.0% increase over 2024. The third quarter accounted for a significant portion of this annual growth.
Several factors influenced consumer demand during this period. The government implemented a GST rate reduction on passenger vehicles, which lowered purchase prices. Personal income tax relief measures provided additional disposable income to potential buyers. The Reserve Bank of India reduced repo rates multiple times, which decreased borrowing costs for vehicle financing.
Sales activity increased during the October-November festival period, when manufacturers and dealers offered promotional schemes. Buyers who had delayed purchases made commitments during this window. Dealerships reported higher footfall and conversion rates compared to previous quarters.
Production facilities operated at increased capacity to meet demand. Supply chain networks handled higher volumes of finished vehicles moving to distribution points across the country.
The export segment also recorded growth during the quarter. Passenger vehicle exports reached 2.25 lakh units in October-December 2025-26, an 11.7% increase over the corresponding quarter. For calendar year 2025, total exports stood at 8.63 lakh units, representing 16.0% growth compared to 2024.
Export demand came from markets in the Middle East, Africa, and Latin America. These regions continued to purchase Indian-manufactured vehicles, maintaining consistent order volumes throughout the year.
The combination of domestic policy changes, monetary easing, and stable export demand created conditions that supported the quarter's sales performance. Manufacturers increased production schedules in response to order books. Financing institutions processed higher numbers of auto loan applications.
The October-December 2025 quarter established new volume benchmarks for the industry. It demonstrated the segment's response to favorable economic conditions and policy interventions.