Wednesday, December 31, 2025
By Kamal Swami
2025 Indian Car Industry: Month-wise Highlights
The year 2025 will be remembered as one of the most transformative years for the Indian automobile industry. This year not only witnessed major policy reforms, but also saw the comeback of established names and a significant push towards electric mobility. From January to December, the sector witnessed defining moments that reshaped consumer choices and set the foundation for a new era of mobility in India.
January 2025: Mahindra’s Market Breakthrough
The year began on a historic note as the homegrown car Mahindra & Mahindra climbed to the second position in India’s passenger vehicle market for the calendar year 2025. According to sales data till December 25, Mahindra sold 5.81 lakh units, surpassing both Tata Motors (5.52 lakh units) and Hyundai (5.50 lakh units). This marked Mahindra’s first-ever finish ahead of these long-standing rivals.
February 2025: Tata’s New Turbo Petrol Surprise
After Mahindra, another domestic carmaker, Tata Motors, made headlines early in the year by debuting its new 1.5-litre, 4-cylinder T-GDi turbo petrol engine. Introduced alongside the Sierra, the engine also powers the Harrier and Safari. Early drive impressions confirmed Tata finally has a petrol motor capable of rivaling turbo units from Hyundai, Kia, and Skoda.
March 2025: VinFast Makes a Smart Indian Entry
Vietnamese EV brand VinFast debuted in India with the VF6 and VF7 electric SUVs. Aggressive pricing and a sharp focus on Tier II and Tier III cities helped the brand establish quick visibility. Targeting customers with private parking and charging access proved to be a smart market-entry strategy.
April 2025: Mahindra Goes All-In on Electric SUVs
Building on its EV momentum, Mahindra launched the XEV 9S, a practical 7-seater electric SUV priced aggressively from Rs19.95 lakh. Positioned between the BE 6 and XEV 9e, the launch underlined Mahindra’s intent to dominate the electric SUV space.
June 2025: Tesla Finally Arrives in India
June 2025 marked the entrance of one more International brand in the Indian car market. The US-based car maker Tesla officially entered India with the Model Y. Offered in RWD and Long Range RWD variants, prices ranged from Rs59.89 lakh to Rs67.89 lakh (ex-showroom). The long-range version claimed 622 km of range and a 0–100 kmph sprint in just 5.6 seconds.
August 2025: Kia Seltos Gets Bigger and Bolder
Kia unveiled the second-generation Seltos, now longer, wider, and more premium. With a longer wheelbase and near 4.5-metre length, the new Seltos set fresh benchmarks for cabin quality and road presence in the midsize SUV segment.
September 2025: GST 2.0 Changes the Game
A major policy shift came in September with the rollout of GST 2.0.
Small cars under 4 meters and 1500cc now attract 18% GST instead of 28%
Petrol, CNG, LPG cars up to 1200cc and diesel cars up to 1500cc received reduced tax slabs
Luxury cars and large SUVs were moved to a flat 40% GST, eliminating cess and lowering the earlier 45–55% tax burden
October 2025: Hyundai Venue Raises the Bar
During the Diwali festive season, Hyundai launched the new-generation Venue. Improved cabin quality, more rear-seat space, and segment-leading features helped the Venue reset standards in the compact SUV category.
November 2025: Tata Sierra’s Grand Comeback
One of the biggest highlights of the year was the rebirth of the Tata Sierra. Reintroduced in November, the SUV received an astonishing 70,000 bookings within 24 hours. Key highlights included a segment-first triple-screen setup, 2730 mm wheelbase, and a modern front-wheel-drive platform.
December 2025: Maruti Victoris Wins Big
Ending the year on a high note, Maruti Suzuki Victoris was crowned Indian Car of the Year (ICOTY) 2025. It outperformed strong contenders like the Tata Harrier EV, Mahindra XEV 9e, and Hyundai Venue. Notably, it is India’s only car with an underbody-mounted CNG tank.
