Record Breaking 38.45 Lakh Cars Were Sold In 2025 With 10.24% YoY Growth

The Passenger Vehicle (PV) segment has achieved a significant milestone, with YTD sales reaching 38,45,801 units—a 10.24% jump from the 34,88,523 units recorded in FY'25. Maruti Suzuki maintains its dominant position, commanding a 42% market share with over 2.16 lakh units sold in January.

The industry is witnessing a definitive shift toward Utility Vehicles (UVs), which now represent 66% of the total passenger vehicle market. 

High-demand models like the Tata Nexon, Hyundai Creta, Maruti Suzuki Swift, Tata Punch and Scorpio twins are leading this trend, with the Nexon alone clocking over 23,000 units in monthly sales and Creta 200,000 units sold in 2025

Interestingly, while urban centers dominate in total volume, rural PV growth at 14.43% is currently outpacing urban expansion at 2.75%, signaling that the aspiration for car ownership is moving rapidly into non-metro regions. With dealer inventory levels stabilizing at a healthy 32–34 days, the sector is well-positioned for a bullish finish to the fiscal year

While Petrol and Ethanol-blended engines still lead the market with a 47.5% share, they have seen a marginal decline as consumers diversify their choices.

The most notable growth is in the CNG and LPG category, which now commands 22.9% of the market led by Maruti Suzuki and driven by the increasing availability of factory-fitted CNG kits in popular models and a demand for lower running costs in the entry-level and compact segments.

A growing preference for Hybrids, which have risen to occupy 8.9% of the total retail sales. This surge is largely attributed to the success of mid-size SUVs where hybrid technology offers a middle ground between performance and efficiency.

Meanwhile, Diesel has maintained a steady presence at 17.1%, particularly favored in larger SUV models like the Mahindra XUV700(now 7XO) and Tata Safari. Electric Vehicles (EVs), though still at 3.6% of the market, are showing a consistent upward trajectory compared to previous years, supported by new launches and improving charging infrastructure.

In terms of market leadership, Maruti Suzuki continues to dominate with a 42.07% share (216,043 units), leveraging its strong portfolio of Petrol and CNG vehicles. Hyundai (65,914 units) and Tata Motors (63,558 units) follow, with Tata particularly benefiting from its leadership in the EV space and the popularity of the Nexon, which remains one of the best-selling models.

Source- FADA, Image source- Respective carmakers