India: Automobile Market Projection for 2026

The Indian automobile market (based on wholesale data) in 2025 is forecast to grow by 5.1% year-on-year to approximately 5.5 million units, marking a record high for the fourth consecutive year. While volumes remained flat through September, the government’s reduction of the Goods and Services Tax (GST) on September 22nd led to an average price drop of 50,000 to 100,000 INR per vehicle, allowing growth momentum to recover from October onward. Although some view the tax cut as temporary, the government believes increased consumption will offset the fiscal impact, and the measures are expected to continue for the time being.