India's Passenger Vehicle Sales Reach Historic 43 Lakh Units in FY25: Report

Synopsis

India's automotive sector has reached a remarkable milestone with passenger vehicle sales hitting 43 lakh units in FY25, marking a 2% increase from the previous year, driven by the rising demand for utility vehicles and favorable market conditions.

Key Takeaways

Passenger vehicle sales reached 43 lakh units.
Utility vehicles contributed to 65% of total sales.
Exports of passenger vehicles hit 7.7 lakh units.
Two-wheelers sales grew by 9.1% to reach 1.96 crore units.
Overall domestic automobile sales increased by 7.3%.

New Delhi, April 15 (NationPress) The automotive sector in India marked a significant achievement in the fiscal year ending March 2025, with passenger vehicle sales soaring to a remarkable 43 lakh units, as per the data unveiled by the Society of Indian Automobile Manufacturers (SIAM).

This represents a 2 percent increase compared to the prior year. The surge was notably driven by the growing appeal of utility vehicles, which constituted 65 percent of all passenger vehicle sales, a rise from approximately 60 percent in the previous fiscal year. The report indicated that this growth stemmed from robust demand for new models, enhanced features, and enticing consumer incentives.

SIAM stated, "The sales surge was fueled by strong demand, investments in infrastructure, favorable government policies, and a persistent emphasis on sustainable mobility."

Furthermore, it acknowledged that sound economic strategies and optimistic market sentiments were instrumental in sustaining growth throughout the year.

Passenger vehicle exports also reached an unprecedented high of 7.7 lakh units, reflecting a 14.6 percent increase from the previous year. This increase was attributed to a rise in the export of India-manufactured global models, particularly to markets in Latin America and Africa.

Additionally, two-wheeler sales experienced a robust recovery, climbing 9.1 percent to achieve 1.96 crore units in FY25. The three-wheeler segment also performed exceptionally well, hitting a record 7.4 lakh units, which marks a 6.7 percent increase, surpassing the previous peak recorded in FY19.

“The expansion in the two-wheeler segment was primarily driven by scooters, thanks to enhanced connectivity in rural and semi-urban regions and the introduction of newer models featuring advanced capabilities,” the report highlighted.

In contrast, commercial vehicle sales saw a slight decline of 1.2 percent compared to the previous year. However, there was a positive trend in the last quarter, which recorded a 1.5 percent increase.

Overall, domestic automobile sales increased by 7.3 percent, while exports across all vehicle categories grew by 19.2 percent during the fiscal year ending March 2025.