How Did Car Sales in India Surpass 3.48 Lakh Units in April with Exports Rising by 20%?
Click to start listening
Synopsis
In April, India's car sales rose by 3.9%, totaling 3,48,847 units, according to SIAM. Exports also increased by 20%, driven by growing international demand. Despite a decline in two-wheeler sales, expectations of a recovery loom thanks to robust farm incomes. Discover how these trends shape India's automotive landscape!
Key Takeaways
- Car sales rose by 3.9% in April 2025.
- Total units sold reached 3,48,847.
- Exports increased by 20% year-on-year.
- Two-wheeler sales dropped 16.7% due to previous high sales.
- Expectations for recovery in two-wheeler sales are on the horizon.
New Delhi, May 15 (NationPress) India's car sales have seen an impressive increase of 3.9 percent, reaching 3,48,847 units in April this year, up from 3,35,629 units during the same month last year, based on the latest figures released by the Society of Indian Automobile Manufacturers (SIAM) on Thursday.
Furthermore, car exports from India have surged by nearly 20 percent year-on-year, totaling 59,395 units in April. In addition, two-wheeler exports witnessed a 14.7 percent year-on-year increase, amounting to 3,68,201 units, as vehicles from manufacturers like Maruti Suzuki, Hyundai India, and Mahindra gain popularity in overseas markets, according to SIAM data.
On the other hand, the two-wheeler segment experienced a decline of 16.7 percent, with sales dropping to 14,58,784 units in April, compared to the significant 17,51,393 units sold in the same month last year.
“The downturn in two-wheeler sales can be attributed to the high base effect from April last year, but we anticipate a rebound in the coming months,” stated Rajesh Menon, director general of SIAM.
Sales in the two-wheeler category are expected to gain traction, aided by a record rabi harvest, which is projected to enhance farm incomes due to increased yields and higher minimum support prices set by the government.
In terms of total sales, including passenger vehicles, three-wheelers, two-wheelers, and quadricycles, April 2025 saw a total of 2,318,882 units sold.
“The automotive sector has smoothly adapted to the new On-Board Diagnostics (OBD) 2 regulations for two- and three-wheelers starting April 2025, alongside the launch of E-20 compliant gasoline vehicles across the nation,” added Menon.
A recent Crisil report indicates that the domestic passenger vehicle dealership industry is expected to experience a revenue growth of approximately 100 basis points (bps) in the current fiscal year, bolstered by a revival in sales volume, even though realizations are anticipated to remain stable.
Crisil Ratings director Himank Sharma remarked, “The rising urban disposable incomes, supported by revised tax slabs, interest rate reductions, and manageable inflation, along with the enduring appeal of SUVs, will drive urban demand for passenger vehicles.”
Additionally, improved farm incomes due to a normal monsoon and increased MSP will also enhance rural vehicle sales, he noted.
Point of View
It's evident that India's automotive industry is on a path of recovery, marked by significant growth in car sales and exports. The resilience shown amidst challenges in the two-wheeler segment reveals opportunities for future advancement. Overall, the nation's auto sector reflects a robust economic landscape, with promising prospects for both urban and rural markets.
NationPress
24/07/2025
Frequently Asked Questions
What was the percentage increase in car sales in April?
Car sales in April increased by 3.9% compared to the previous year.
How many units were sold in April?
A total of 3,48,847 units were sold in April.
What was the increase in car exports?
Car exports saw a substantial rise of nearly 20%, totaling 59,395 units.
Why did two-wheeler sales decline?
Two-wheeler sales fell 16.7% due to the high base effect from the previous year.
What factors are expected to boost future sales?
Higher farm incomes and a normal monsoon are anticipated to boost vehicle sales.
