Cars kept in a sales lot (Representative image).
Credit: Reuters Photo
India's top two carmakers, Maruti Suzuki and Mahindra & Mahindra, reported a strong rise in December sales to dealers, company data showed on Thursday, with tax cuts from earlier in the year fuelling demand into the final month of 2025.
In September, India cut goods and services tax on small cars to 18 per cent from 28 per cent and on sports utility vehicles with engine capacities of more than 1,500 cc to 40 per cent from about 50 per cent, in a bid to spur consumer spending and bolster growth amid steep US tariffs.
This benefitted market leader Maruti Suzuki's small car portfolio, its biggest segment, which rose 50 per cent to 92,929 units - its highest level since January 2025.
Sales of its utility vehicles climbed 33 per cent, and total sales to domestic dealers jumped 37 per cent to a record high of 1,78,646 units.
Overall sales, including exports, for the Swift manufacturer grew 22 per cent for the month as exports dipped by around a third.
Earlier in the day, Mahindra & Mahindra - which has a car portfolio comprised entirely of SUVs - said its monthly sales grew 23 per cent in December.
Its sales growth of 18 peer cent in fiscal 2026 is among the fastest in the world's third-largest car market, helped by new launches and customer preference for its tech-loaded SUVs.
This has helped the Scorpio manufacturer leapfrog Hyundai India and Tata Motors to the no. 2 spot in the current financial year.