Year Ender 2025 : 4.5 Million Vehicles Sold this Year, SUVs Dominate India’s Market

New Delhi. Every year the vehicle market in India moves forward with new expectations and new technology. 2025 was also special in this matter. While on one hand the sales figures gave relief to the companies, on the other hand the demand for safety and electric vehicles appeared to be changing the direction of the auto sector.

Total sales in 2025: How big is the market?

According to government data and market reports, about 4.5 million vehicles were sold across the country this year. This includes all three segments—petrol-diesel (ICE), hybrid, and electric. Despite production costs and global economic fluctuations, the market has indicated stable demand, which is considered positive for manufacturers.

Highest demand for SUV

The most interesting picture in 2025 was seen in the SUV segment. The contribution of the SUV segment to the total sales was about 50 percent. Demand for compact, mid-size, and 7-seater SUVs increased continuously. It is believed that improvement in road networks and preference for high-riding cars and feature-rich models are the main reasons behind this trend.

More than 75 new launches

This year, companies launched more than 75 new cars or facelifted models. New generation models were also included in this. From budget to premium, new offerings were seen in every segment.
Major launch trends of 2025:

• ADAS and smart safety features
• Connected Car Technology
• Fast Charging System (EV)
• Safety standards like 6-airbags

Contribution of 8-10% in EV segment

Awareness about electric vehicles increased, and a steady rise was seen in EV sales. EVs will account for around 8-10% of total sales by 2025.

These models drove the EV market:
• MG Windsor EV
• Hyundai Creta EV
• Kia Carens Clavis EV
• Tata Nexon EV

Although challenges still exist regarding charging infrastructure and range, EV adoption in cities is growing rapidly.

Companies focus on security

The most positive change of 2025 was in safety.
• Most new cars came with standard features like 6 airbags.
• Many models achieved 4-5 star ratings in BNCAP and Global NCAP tests.
• ADAS Level-2 features extended to mid-segment.

The automobile industry's expectations from 2026

The strategies of companies in 2026 are clearly visible:
• Aggressively growing EV and hybrid segments
• Focus on affordable EVs
• Making emission standards more stringent
• Technology-driven driving experience

In the new year, we can see such models, which will not only increase safety but will also prove to be a better option in reducing pollution.