India, Dec. 31 -- India's car market in 2025 was shaped less by flashy launches and more by decisions made far from showroom floors. Government policy, tax restructuring, fuel mandates and regulatory shifts played an outsized role in influencing what buyers paid, what manufacturers prioritised and how the market eventually recovered after a slow start.

The year began with the Union Budget in February, which delivered two signals at once. Import duties on motorcycles below 1,600cc were reduced across CBUs, SKDs and CKDs, slightly easing access for global brands. More importantly for the long term, customs duties were removed on lithium-ion battery cells, battery management systems and key EV manufacturing inputs, reinforcing the governmen...