Mahindra & Mahindra and Kia India closed the calendar year on a strong note as domestic vehicle demand picked up in December 2025. M&M reported marked gains across passenger and commercial vehicles while Kia recorded its best December since inception, both companies attributing momentum to improved consumer sentiment and favourable policy settings.
India vehicle sales growth
M&M said it dispatched 50,946 vehicles to dealers in December, a 23 per cent increase from 41,424 units a year earlier. For the year to date in the current financial year, the automaker reported domestic wholesales of 476,476 units, up 18 per cent from 402,360 units in the prior year.
“The calendar year 2025 ended on a positive note, with Mahindra clocking its highest ever volumes in both SUVs and light commercial vehicles,” said Nalinikanth Gollagunta, Chief Executive Officer of M&M’s Automotive Division. He added that M&M achieved SUV sales of 50,946 units in December and LCV sales of 24,786 units, a 34 per cent rise for the latter. The company said total vehicle sales for the month reached 86,090 units, a 25 per cent year on year increase.
Kia India also reported a sharp upswing in December wholesales. The company dispatched 18,659 units to dealers, up 105 per cent from 8,957 units in December 2024. For the calendar year 2025, Kia recorded total wholesale volumes of 280,286 units, representing 15 per cent growth over the 245,000 units sold in 2024.
“Supported by favourable macroeconomic conditions and government policies, including a consumer friendly GST framework, these initiatives reinforced positive consumer sentiment,” said Atul Sood, Senior Vice President Sales and Marketing at Kia India. He said the company will focus on value led offerings and improving the ownership experience to sustain growth into 2026.
The strength was not confined to passenger vehicles. In the tractor segment, M&M reported domestic dispatches of 30,210 units in December, up 37 per cent from 22,019 units a year earlier. Escorts Kubota posted domestic tractor sales of 6,828 units for the month, a 36.1 per cent rise from 5,016 units in December 2024.
Industry executives pointed to several tailwinds for rural and farm equipment demand. Cash flow in the rural economy has improved following a strong Kharif harvest, while conducive weather and healthy reservoir levels have supported an expansion in Rabi sowing. Continued state subsidies and lower GST rates also helped affordability for farmers.
Automakers and farm equipment makers said the combination of stronger rural incomes, policy support and renewed consumer confidence should help sustain retail demand in the near term. Manufacturers face the usual challenges of supply and component availability, but current indicators suggest steady momentum as firms head into 2026.
Analysts said the December performance will be closely watched by investors and policymakers as a signal of broader domestic consumption trends. For manufacturers such as M&M and Kia, maintaining production discipline while expanding market reach will be key to converting wholesales gains into sustained retail growth.
Key Takeaways:
- India vehicle sales growth saw M&M and Kia post strong December wholesales, with M&M up 23% and Kia up 105% year on year.
- M&M reported record volumes in SUVs and LCVs and robust tractor dispatches, supporting an 18% YTD rise in domestic wholesales.
- Kia achieved its best December since inception and 15% growth for CY 2025, citing supportive macro conditions and tax policy.
- Stronger rural income, favourable crop yields and lower GST rates helped sustain tractor demand and broader retail sales.
