India’s auto market is entering the year-end on a stronger footing than expected, with post-festive momentum refusing to fade. Backed by GST-driven affordability and steady retail demand, analysts say the sector is set for a solid December.

Shailender Luthra of Brite Group said VAHAN registrations show that buying hasn’t slowed after the festive season, and dealers continue to report a healthy order book. According to him, sentiment is upbeat and demand is not showing signs of cooling.

FADA CEO Saharsh Damani also said the strength in demand isn’t just a festive spillover. November benefited from marriage-related purchases, and December is likely to be boosted by year-end offers from automakers. He added that the continuation of schemes in early 2026 will be crucial for sustaining momentum.

For October–December, Damani expects passenger vehicle sales to grow above the 4–4.5% pace seen so far this year, helped by GST 2.0. Two-wheeler demand is likely to rise in high single digits. For the full year, passenger vehicle growth is estimated at 5–6%, and two-wheeler growth at 9–10%.

On emission norms, Luthra said both manufacturers and buyers are prepared for tighter standards. While higher re-registration costs for older vehicles could deter some, he believes it won’t significantly affect buying behaviour, as many customers now prefer replacing ageing vehicles. He also pushed for stronger incentives for scrappage and recycling.

Damani said EV penetration remains modest at 8–9% for two-wheelers and about 5% for passenger vehicles, but expects this to climb over the next 6–9 months to about 15% and 8–9%, respectively, as more established players enter the space.

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