MP Biplab Kumar Deb Attends Parliamentary Standing Committee Meeting in Kochi
Indian Automobile Sector Records 7.71% Year-on-Year Growth Amid GST 2.0 Reforms
Jan 07, 2026The Indian automobile sector registered a robust 7.71 per cent year-on-year growth in the last calendar year, with total vehicle sales crossing 2.81 crore units, according to data released by the Federation of Automobile Dealers Associations (FADA).
Two-wheelers continued to dominate the market, posting a growth of 7.24 per cent, while passenger vehicles witnessed a stronger surge of 9.7 per cent. Notably, rural passenger vehicle sales grew by over 12 per cent, significantly outpacing urban markets, which recorded growth of just over 8 per cent. This trend highlights the widening reach of personal mobility beyond metropolitan areas.
Auto retail sales saw a sharp increase of 14.63 per cent year-on-year in December, driven primarily by strong demand for passenger vehicles, commercial vehicles and three-wheelers. The growth momentum was supported by festive season demand and improved affordability following the implementation of GST 2.0 reforms.
Industry experts believe the GST 2.0 reforms have played a key role in boosting consumer sentiment by lowering ownership costs and simplifying taxation. With demand remaining strong, the auto retail sector remains optimistic, with growth momentum expected to strengthen further over the next three months.
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