PV sales up 2% in FY25 on utility vehicle demand, says industry group

Most segments clock growth, commercial vehicle numbers decline: SIAM

Passenger vehicle (PV) wholesales grew by 2 per cent in FY25, riding on demand for utility vehicles (UVs) to touch the highest ever volume of 4.3 million units, said an industry association on Tuesday as it noted a “momentum” for electric vehicles (EV) in the country.

 

Sales improved despite the high base effect in FY24, according to data released by the Society of Indian Automobile Manufacturers (SIAM). Two-wheeler (2W) and three-wheeler (3W) sales grew 9.1 percent (19.6 million units) and 6.7 percent (740,000 units) in FY25. Commercial vehicle (CV) sales declined by 1.2 per cent.

 

Overall sales by the automotive industry grew 7.3 per cent and exports 19.2 per cent.

   

EV sales in FY25 grew 16.9 per cent (1.97 million units), compared to 1.68 million in FY24. Electric PV registrations reached 100,000, growing 18.2 per cent, according to VAHAN data analysed by SIAM. Electric 2W registrations stood at 1.15 million units, up 21.2 per cent. Registrations for electric 3Ws increased 10.5 per cent at around 700,000 units. "Recent policy interventions of the government of India have provided the necessary momentum for the adoption of electric vehicles in the country," SIAM said.

 

SIAM expects all segments of the automobile industry to continue growth in FY26 due to stable macroeconomic conditions and the government’s policies and infrastructure spending. “A normal monsoon, as currently forecast for 2025, is expected to support broader economic activity, especially in rural and semi-urban regions, which would be a tailwind for auto sector demand.

 

“The sector will also benefit from the reforms in the personal income tax announced in the recent Union Budget of 2025-26, which has been followed by two back-to-back rate cuts by RBI [Reserve Bank of India],” it said.

 

“Overall, the automobile industry will closely monitor macroeconomic factors and global geopolitics, which will determine the key demand conditions, and supply chain dynamics going forward.”

 

Sales of UVs grew 11 per cent in FY25. Their share in total PV sales increased from 60 per cent in FY24 to 65 per cent in FY25. New UVs packed with advanced features and modern design “resonated strongly” with consumers, along with promotional offers and discounts offered by auto manufacturers.

 

PVs clocked their highest ever exports at 770,000 units in FY25, up 14.6 per cent year on year (Y-o-Y). “Several global models are being made in India for markets in Africa and Latin America. For example, Maruti Suzuki and Honda Cars have seen decent growth in exports. In fact, some companies are shipping vehicles to developed economies like Japan. Honda, for example, has been exporting its made-in-India Elevate to Japan where it is a run-away hit,” said an industry expert. 

 

Rural demand and consumer confidence helped 2W sales growth, which was primarily led by scooters. Two-wheeler exports grew 21.4 percent to 4.2 million units. “Further, economic stability in the African region and demand in Latin America has supported this growth,” SIAM said. EVs’ share in 2W crossed 6 per cent.

 

The 3W segment posted its highest sales, of 740,000 units, surpassing the peak of FY19. Growth was driven by demand for last-mile mobility solutions, replacements, and easier financing. As many as 310,000 3W units were exported, up 2.3 per cent Y-o-Y.

 

CV sales had a positive growth of 1.5 per cent in the last quarter of FY25, but overall number for the year declined. SIAM said that though the trucks segment had a “slight de-growth”, the requirement of freight movement has been served with fleets migrating towards higher gross vehicle weight vehicles. “The expanding highways and expressway network is playing a crucial role in reducing logistics costs, enhancing regional connectivity which is auguring well with the performance of this segment. However, the infrastructure development has helped in driving sales of buses for inter-city travels and focus on mass-mobility in intra-city routes has also helped this segment,” it added.

 

As many as 81,000 CVs were exported in FY25, up 23 per cent from last year.

 

“The Indian automobile industry continued its steady performance in FY2024–25, driven by healthy demand, infrastructure investments, supportive government policies, and continued emphasis on sustainable mobility,” said Shailesh Chandra, president of SIAM.

 

“PVs and 3Ws witnessed a moderate growth on account of high base effect, but saw the highest ever sales in these categories, while the 2W segment registered strong growth in FY2024-25. However, commercial vehicles witnessed a slight de-growth in the FY2024-25, though performance in recent months has been comparatively better,” he said.