Tuesday, January 13, 2026

Tax Cuts Spark Year End Car Buying Frenzy as December Sales Surge Nearly 27 Percent


Car sales witnessed a powerful upswing in December, rising by 26.8 per cent as tax cuts, festive season demand, and aggressive year end offers combined to create one of the strongest months for the auto industry in recent years. The surge was driven by renewed consumer confidence and record dispatches from manufacturers eager to capitalise on improved market sentiment.

Tax relief emerged as the biggest catalyst behind the jump in demand. Reduced levies helped bring down on road prices, making vehicle ownership more affordable for a wide segment of buyers. This price advantage encouraged many customers to fast track their purchase decisions, especially those who had been postponing big ticket spending amid economic uncertainty earlier in the year.

Automakers responded swiftly to the uptick in showroom footfall by ramping up dispatches. Several companies reported their highest ever monthly shipments as they ensured dealerships were well stocked to meet demand. Year end discounts, exchange bonuses, and attractive financing schemes further sweetened deals, turning December into a decisive buying window for both first time customers and upgraders.

SUVs and compact cars remained the backbone of growth, reflecting evolving consumer preferences for practicality and value. At the same time, premium and luxury segments also showed healthy traction, indicating that urban buyers were willing to spend more as price pressures eased and financing options improved.


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