New Delhi, January 2026 – India’s passenger vehicle (PV) market continued to show stable demand conditions in December 2025, according to JATO Dynamics’ latest Retail Market Pulse report. A total of 378,736 passenger vehicles were registered during the month, maintaining the market’s positive year-on-year trajectory, although volumes moderated sequentially as the market moved past the festive period.
Ravi Bhatia, President of JATO Dynamics India, commented: ““While December saw a normal seasonal softening after the festive peak, the underlying structure of demand remains intact. We continue to see sustained interest in SUVs and growing activity beyond metro markets.”
Compared with January 2026, registrations fell from 520,300 to 415,300 units, marking a natural correction in the market.
Bhatia continued: “This easing is consistent with seasonal trends that typically follow a strong start to the calendar year. Despite the MoM dip, overall retail momentum remains healthy, supported by steady demand across key segments and stable inventory levels.”
Recent policy and sentiment indicators provide a supportive backdrop for discretionary consumption. The government’s recent reduction and rationalisation of GST on select vehicle and auto-related categories has marginally improved affordability at the retail level, particularly in price-sensitive segments.
At the same time, the Reserve Bank of India’s Consumer Confidence Survey continues to show a gradual improvement in urban consumer sentiment and a stable rural consumer confidence, suggesting stable household outlooks heading into the year-end period.
These factors are contributing to a relatively stable demand environment for passenger vehicles.
Maruti Suzuki retained its leadership position, supported by its broad portfolio across entry-level and compact segments. Tata Motors and Mahindra continued to strengthen their positions, driven by demand for SUVs and recent product introductions.
Hyundai remained stable, while Toyota continued to benefit from interest in hybrid offerings. Volkswagen Group recorded one of the strongest growth performances, reflecting the impact of new launches.
Some brands faced pressure amid intensifying competition, underlining the increasingly competitive structure of the Indian market.
The Tata Nexon remained among the market’s leading models, followed by the Punch, Swift, Baleno and Fronx. Other strong performers included the Wagon R, Creta, Venue, Brezza and Grand Vitara.
SUVs continued to dominate the market, accounting for more than half of all registrations. Hatchbacks remained relevant in value-driven segments, while sedans and MPVs maintained niche but stable demand.
Petrol and diesel continued to dominate the powertrain mix, although hybrids and EVs are gradually increasing their presence from a low base.
“The shift towards alternative powertrains in India remains evolutionary rather than disruptive,” Bhatia added. “Adoption is progressing steadily, particularly in urban markets and selected use cases.”
Urban and rural markets outperformed metro regions, indicating a broadening of demand beyond India’ s largest cities.
Delhi, Bengaluru and Pune were the largest city markets, while Maharashtra, Gujarat and Tamil Nadu led registrations at the state level.
Vehicles of Japanese origin accounted for the largest share of registrations, followed by Indian and Korean manufacturers
Looking ahead, the PV market is expected to remain stable into early 2026, supported by moderate macro tailwinds, new product launches and continued SUV demand.
“Growth is becoming more evenly distributed across regions and segments,” Bhatia concluded. “That is helping to make the market more balanced and resilient over time.”
For full rankings and detailed analysis, please contact us.
Contact:
Bex Barton, +44, 7874 866091, jatoteam@firstlightgroup.io
JATO Dynamics is the world's leading supplier of automotive business intelligence. Working across more than 50 countries, we deliver accurate analysis and trustworthy insights to support the industry.
Our specialist research solutions are designed to enable automotive businesses to thrive. Whether you need to compare vehicle specifications, optimise your digital marketplace offering, or identify regional trends, our range of customisable tools and reporting solutions can help.
Visit JATO at www.jato.com for more information.