Top 10 Highlights of 2025 - Indian Auto Industry

2025 will be remembered as the year the Indian car industry reported massive structural and policy-related changes. From the massive GST 2.0 tax reforms that makes car buying more accessible in September to the significant improvement in long-range EV adoption. The year ends with the re-birth of the iconic Tata Sierra nameplate, and the introduction of Mahindra’s new practical 7-seater SUV, the XEV 9S. In this article, we look at the 10 defining milestones that set the stage for a new ear of Indian mobility. 

1. Mahindra Beats Hyundai and Tata to secure 2nd spot

According to the Van Data till December 25, Mahindra & Mahindra has achieved Number 2 position in India’s passenger vehicle market for cycle-year 2025. This is for the first time, Mahindra has finished at 2nd position beating the likes of the Hyundai and Tata Motors. Mahindra sold a total of 5.81 lakh units in 2025 as against 4.90 lakh units in 2024. Tata Motors is at 3rd position with 5.52 lakh units sold, while Hyundai is set to finish Number 4 with 5.50 lakh units in CY2025. 

2. Tata Sierra’s Comeback in Grand Style

The iconic Tata Sierra nameplate has been re-introduced in the grand fashion in November 2025. The SUV has received an overwhelming response from buyers, as it achieved 70,000 pre-bookings in less than 24 hours. In the new avatar, the SUV comes as a front-wheel-drive model with segment-first 3-screen setup and longest-wheelbase of 2730mm. Also See - 2025 Tata Sierra Review

3. New Hyundai Venue - Segment’s Benchmark

Hyundai launched the new generation Venue during the festive season, Diwali. The new-gen Venue sets a new benchmark in terms of cabin quality and fit and finish. It grows in size and offers more space in the second-row along with several segment-leading comfort and creature features. Read Detailed First Drive Review

4. New Kia Seltos - Bigger & Bolder

The second-gen Kia Seltos introduced in an all-new avatar, featuring a longer wheelbase and sets new benchmark in terms of cabin quality and fit and finish. Moreover, the SUV becomes the longest in the segment, measuring close to 4.5 meters in length. Also See - 2026 Kia Seltos Review

5. Maruti Victoris - Car of the Year 2025

Maruti Suzuki Victoris bagged the Indian Car of the Year (ICOTY) award this year. The SUV manages to beat the likes of the Skoda Kylaq, Mahindra XEV 9e, Tata Harrier EV and the new Hyundai Venue to bag this award. It is only car in the market to feature an underbody CNG tank. Full Report

6. Tata’s New 1.5L turbo petrol engine - A Surprise

With Sierra, Tata Motors introduced its new 1.5-litre, 4-cylinder, T-GDi petrol engine. This engine also powers the Safari and Harrier in different states of tunes. In our test, we found this powertrain surprising good. We can say that Tata Motors has a good petrol engine to take on the likes of the Hyundai Creta turbo petrol, Kia Seltos turbo petrol and Skoda Kushaq turbo. Read Here - Tata Harrier Petrol Automatic Review

7.  VinFast Entry - Aggressive Pricing, Smart Approach

The Vietnamese electric car manufacturer, VinFast entered the Indian auto industry with two of its electric SUVs, including the VF6 and the VF7. Both electric SUVs were launched at an aggressive price tag, which makes them excellent value for money offerings. Moreover, the brand is targeting Tier II and Tier III cities people have individual houses with space for parking and charging stations. This unique approach brings good results for the new brand in our market. Full Report Here

8. Mahindra Electric - Aggressive Approach

After the success of XEV 9e and BE 6, Mahindra launched the XEV 9S 7-seater electric SUV in our market. This SUV sits between the BE 6 and XEV 9e, in terms of pricing. It is clear that Mahindra wants to dominate the EV SUV segment by offering big products at an aggressive price. The base variant starts at Rs 19.95 lakh, which is quite aggressive keeping its size in mind. Full Report here

9. Tesla India Entry

The American EV manufacturer, TESLA finally entered the Indian market with its MODEL Y electric SUV. It is available in two variants - RWD and Long Range RWD - priced at Rs 59.89 lakh and Rs 67.89 lakh, respectively, ex-showroom. The higher-spec model is claimed to offer a range of 622km on a single charge. It is claimed to achieve 0-100kmph in just 5.6 seconds. Full Story

10. GST Reforms

In September 2025, Government of India announced GST 2.0 which reduces taxes on most of the cars on sale in our market. In fact, the small cars benefited the most. Cars below 1500cc engine and 4 meters in length now attracts 18% GST rates instead of 28%. Read full Story Here

Petrol & petrol hybrid, LPG and CNG cars with up to 1200cc engine and 4000mm length now attracts a straight 18% GST rates. Similarly, diesel and diesel hybrid cars with engine capacity up to 1500cc engine and 4 meters length have lowered 18% GST rates. 

The GST slab for the luxury cars and big SUVs is now shifted to 40%. Earlier, it was 28 percent on big cars + a cess by up to 17-22 percent. The overall tax ranging somewhere between 45-55 percent, which is now reduced to just a 40 percent under new GST rate and no cess. 

Also See - Mahindra XUV 7XO Price Prediction