The Indian automobile industry maintained steady momentum in March 2025, as per data released by the Society of Indian Automobile Manufacturers (SIAM). Passenger vehicle sales recorded a modest 2% growth, while the Two-Wheeler and Three-Wheeler segments saw strong double-digit growth during the month, reflecting continued demand across categories.
During March 2025, domestic passenger vehicle sales grew 3.6 per cent, with 3,81,358 units sold as compared to 3,68,090 units sold in the year-ago period. On the other hand, for the fiscal year ending March 31, 2025, the passenger vehicle segment showed a muted growth of 2 per cent. During FY25, a total of 43,01,848 units were sold as against 42,18, 750 units sold in the last fiscal.
Passenger vehicle exports reached an all-time high in FY 2024-25, with 0.77 million units exported—marking a 14.6% increase over FY 2023-24. This growth has been fueled by strong demand for globally popular models manufactured in India, particularly in Latin American and African markets. Additionally, some automakers have begun exporting to developed markets, further contributing to the surge.
In commenting on the sales performance for 2024-25, Mr. Shailesh Chandra, President of SIAM, stated, “The Indian automobile industry demonstrated consistent growth during FY2024-25, driven by strong demand, increased infrastructure investments, supportive government policies, and a continued focus on sustainable mobility. While the Passenger Vehicles, Two-Wheelers, and Three-Wheelers all saw growth compared to FY2023-24, the rates varied across segments. Passenger Vehicles and Three-Wheelers experienced moderate growth due to a high base effect, yet still reached record sales figures in these categories. Meanwhile, the Two-Wheeler segment showed robust growth in FY2024-25. On the other hand, Commercial Vehicles saw a slight decline in sales, although performance improved in the later months of FY2024-25. Exports also saw a solid recovery across all segments, with Passenger Vehicles and Two-Wheelers particularly benefiting from stronger global demand and India’s growing competitiveness. Additionally, the Indian government introduced the PM E DRIVE and PM e-Sewa schemes in FY2024-25, highlighting its strong commitment to advancing sustainable mobility. Looking ahead, the stable policy environment, along with recent measures such as personal income tax reforms and RBI rate cuts, is expected to bolster consumer confidence and further stimulate demand across various segments.”
Mr. Rajesh Menon, Director General of SIAM, commented on the performance for 2024-25, stating, “Passenger vehicle sales reached an all-time high in FY2024-25, totaling 4.3 million units, reflecting a 2% growth compared to the previous year. Sales of Three-Wheelers also saw a strong increase, rising by 6.7% to 7.4 lakh units, marking the highest-ever sales in a financial year. Two-Wheelers experienced a solid growth of 9.1%, with sales reaching 19.6 million units. However, Commercial Vehicles saw a slight decline of 1.2%, with 9.6 lakh units sold in FY2024-25, compared to the previous year.”
As per the SIAM data, in Q4 of FY 2024-25, the PV segment reported a sale of 11,62,560 units, resulting in a growth of 2.4 per cent.
Two-wheelers: In FY 2024-25, the domestic two-wheeler segment recorded a robust growth of 9 per cent, with 1,96,07, 332 units sold. While in Q4 of last fiscal, it showed a growth of 1.4 per cent, with 45,67,762 units sold.
In FY 2024-25, two-wheeler exports saw a strong growth of 21.4% year-on-year, reaching a total of 4.2 million units. The introduction of new models and entry into new markets have significantly expanded the global footprint of Indian two-wheeler manufacturers. This growth was further supported by improved economic stability in Africa and rising demand across Latin America.
Three-wheelers: The three-wheeler segment during the last fiscal showed a healthy performance, with a growth of 6.7 per cent by selling 7,41,420 units as compared to 6,94801 units sold in the last fiscal. In Q4 too, it showed a solid performance of 7.7 per cent, with 1,78,768 units sold.
Three-wheeler exports reached 3.1 lakh units in FY 2024-25, reflecting a modest growth of 2.3% over FY 2023-24.
Commercial vehicles: Reflecting a more subdued show, commercial vehicles segment reported a degrowth of 1.2 per cent in FY 2024-25, while in the last quarter of the previous fiscal, the segment showed growth of 1.5 per cent.
Commercial vehicle exports saw a solid growth of 23% in FY 2024-25, reaching 0.81 lakh units compared to the previous year.
EV penetration: As the market for electric vehicles (EVs) expands in the country, the total EV registrations reached 1.97 million units last fiscal, as compared to 1.68 million units in the year-ago period. This reflects a strong growth of 16.9 per cent on the back of policy intervention by the government in the form of PM e-Drive scheme, PM e-Sewa and Electric Mobility Promotion Scheme (EMPS), coupled with new launches by the manufacturers.
Growth Outlook for FY 2025-26
The Indian automobile industry is expected to maintain its growth momentum in FY 2025-26, supported by stable macroeconomic conditions, government infrastructure spending, and favorable policies. A normal monsoon is projected to boost rural demand, while recent income tax reforms and RBI rate cuts are likely to enhance vehicle financing and consumer spending. Export demand, especially in Africa and neighboring countries, remains strong as ‘Made in India’ vehicles gain popularity. However, the industry will continue to monitor global geopolitical developments and macroeconomic trends that could impact demand and supply chains.
