India’s automobile sector signed off calendar year 2025 on a confident footing, with leading players Mahindra & Mahindra and Kia India reporting robust sales growth in December.
Strong demand for SUVs, light commercial vehicles and tractors, coupled with improving rural sentiment and steady consumer confidence, helped both automakers post impressive year-end numbers.
Mahindra Closes 2025 With Record SUV, LCV Volumes
Mahindra & Mahindra Ltd reported a 25 per cent year-on-year rise in overall automobile sales, including exports, at 86,090 units in December 2025, according to a regulatory filing.
The growth was driven largely by sustained demand in the domestic market, particularly for passenger vehicles and commercial vehicles.
Domestic passenger vehicle sales jumped 23 per cent to 50,946 units in December 2025, compared with 41,424 units in the same month last year. Mahindra’s strong performance in the SUV segment continued to anchor volumes, as buyers remained drawn to the company’s utility-focused portfolio.
Commercial vehicles also delivered a solid showing. Domestic sales in the segment stood at 24,786 units during the month, marking a sharp 34 per cent increase over December 2024.
This reflected resilient demand from logistics, infrastructure and small business operators, even amid a mixed global economic backdrop.
Commenting on the year gone by, Nalinikanth Gollagunta, CEO, Automotive Division, Mahindra & Mahindra, said the calendar year 2025 ended on a positive note for the company. “Mahindra clocked its highest-ever volumes in both SUVs and LCVs (over 3.5T) segments, a significant milestone for the company,” he said.
Farm Equipment Business Sees Sharp Tractor Sales Growth
Mahindra’s farm equipment business also emerged as a key growth driver at the close of the year. The company reported total tractor sales of 31,859 units in December 2025, up from 22,943 units in the same period a year ago.
Domestic tractor sales rose even faster, climbing 37 per cent year-on-year to 30,210 units in December 2025, compared with 22,019 units in December 2024. Export volumes for the month stood at 1,649 units, registering a sharp 78 per cent increase over the previous year.
Veejay Nakra, President, Farm Equipment Business at Mahindra & Mahindra, attributed the strong performance to improving conditions in rural India. “Cash flow availability in the market has improved, supported by favourable crop yields following the Kharif harvest,” he said.
He added that conducive weather conditions and healthy reservoir levels have boosted Rabi sowing acreage, which is expected to sustain tractor demand in the coming months. The outlook suggests that rural consumption, a critical pillar of the auto sector, may continue to support volumes into early 2026.
Kia India Logs Best-Ever December Sales
Kia India also ended the year on a high note, reporting more than a two-fold jump in sales to 18,659 units in December 2025, compared with 8,957 units in December 2024. The company said this marked its best-ever December performance since entering the Indian market.
For the full calendar year 2025, Kia India recorded total wholesale volumes of 2,80,286 units, up from 2,45,000 units in 2024, translating into a 15 per cent year-on-year increase.
Atul Sood, Senior Vice President, Sales & Marketing at Kia India, described 2025 as a year of “consistent and sustainable growth” for the company. He said the performance was driven by a combination of strategic product actions and operational improvements.
Product Strategy, Sentiment Drive Kia’s Growth
According to Sood, Kia’s growth in 2025 was supported by new product introductions such as the Carens Clavis and Carens Clavis EV, along with trim optimisation across high-volume models including the Seltos, Carens and Sonet.
Operational efficiencies and continuous improvements across sales, service and customer engagement also played a role, he added. “Supported by favourable macroeconomic conditions and government policies, including a consumer-friendly GST framework, these initiatives reinforced positive consumer sentiment,” Sood said.
The company’s focus on refining its product mix and enhancing ownership experience appears to have resonated with buyers in a competitive passenger vehicle market.
What This Means for 2026
Looking ahead, both automakers remain cautiously optimistic. Mahindra expects rural demand to stay supportive, given improved farm incomes and favourable agricultural indicators. Kia, meanwhile, plans to continue strengthening its value-led offerings and ownership experience.
Sood said Kia India remains focused on delivering steady and sustainable growth in 2026 amid a dynamic market environment. While challenges such as cost pressures and global uncertainties persist, December’s numbers suggest that consumer appetite for vehicles remains intact as the industry enters the new year.
