The Indian automobile industry began 2025 with a mixed performance across segments, as passenger vehicles recorded their highest-ever January sales, while two-wheelers exhibited divergent trends, according to the latest data from the Society of Indian Automobile Manufacturers (SIAM).
Passenger vehicle sales grew 1.6% year-on-year to 3.99 lakh units in January 2025, setting a new record for the month, excluding luxury brands such as BMW, Mercedes, JLR, and Volvo.
The two-wheeler segment showed contrasting trends. Overall sales rose by 2.1% to 15.26 lakh units, driven by a strong 12.4% growth in scooter sales, reaching 5.48 lakh units. However, motorcycle sales fell by 3.1% to 9.36 lakh units, indicating persistent rural market weakness, while moped sales saw a slight decline of 0.4% to 41,872 units.
The three-wheeler sector showed strong recovery, recording a 7.7% growth to 58,167 units in January 2025. Passenger carriers led the segment with a 10.4% rise to 46,674 units, while goods carriers saw marginal growth of 0.3% to 10,029 units.
However, the electric three-wheeler segment presented mixed trends. E-rickshaw sales declined sharply by 20.6% to 1,002 units, while e-cart sales registered a 5.5% growth to 462 units.
Production remained strong, with total output across categories reaching 25.46 lakh units, reflecting manufacturers’ confidence in future demand. Meanwhile, the quadricycle segment witnessed a staggering 97% drop, with just one unit produced, raising concerns about its viability in the Indian market.
Rajesh Menon, Director General, SIAM, said, “Passenger Vehicles posted their highest-ever January sales in 2025, reaching 3.99 lakh units, with a growth of 1.6% compared to January 2024. Three-wheelers grew by 7.7% year-on-year, with sales of 0.58 lakh units. Two-wheelers saw a 2.1% increase with sales of 15.26 lakh units. The recent Union Budget announcements prioritizing long-term economic growth, along with the personal income tax changes and RBI’s interest rate reduction, are expected to boost consumer confidence and drive further demand in the auto industry.”
The latest data highlights key trends in the Indian automotive market. Strong scooter sales alongside declining motorcycle sales suggest shifting urban mobility preferences and ongoing rural economic challenges.
The three-wheeler segment’s growth, especially in passenger carriers, reflects rising demand for last-mile connectivity, while the sharp drop in e-rickshaw sales raises concerns about electric mobility adoption.
Looking ahead, industry growth will depend on factors like interest rates, fuel prices, and economic recovery, particularly in rural areas. Budget announcements and RBI’s rate cuts may boost consumer sentiment, though the impact will vary across segments.
