According to JATO Dynamics, India's passenger car market is on track to end 2025 with record retail sales of 4.6 million units, up 10.5% from 4.12 million units in 2024 and significantly exceeding previous forecasts, according to the Economic Times. Although sales of electric vehicles are also expected to reach a record 193,000 units, up 9.4% from last year, electric vehicles still account for only about 4% of the market, and demand for them is mainly driven by incentive measures rather than organic consumer demand.
Automakers initially planned low single-digit growth amid expectations of a sluggish year, but a strong recovery in the second half of the year, driven by lower GST, holiday demand and the popularity of compact SUVs, offset weak results at the beginning of the year. Retail demand has accelerated since October, with almost 3.9 million vehicles sold in the first 11 months, and about 550,000 units expected to be added in December.
Anticipating steady demand for gasoline, diesel and CNG vehicles, manufacturers increased production in November: Maruti Suzuki increased production by 26% compared to the same period last year, and Mahindra & Mahindra increased production by 10%. Ravi Bhatia of JATO (a global leader in automotive data, analysis, and research) noted that while sales of electric vehicles have doubled, their adoption has stalled at the "first users" stage; wider adoption will depend on addressing issues related to mileage reliability, charging infrastructure, resale value, and overall predictability of retention
