India’s Auto Sector Logs 7.3% Growth; FY25 Passenger Vehicle Sales At Record High

India’s automobile industry saw a 7.3% rise in domestic sales in FY 2024–25, driven by demand and policies.

Passenger vehicle sales reached a historic high of 43 lakh units, marking a 2% increase despite a high base from the previous year.

Passenger Vehicles Lead The Charge

Sales of passenger vehicles led the growth, with Utility Vehicles (UVs) contributing 65% to total sales, up from 60% in FY24.

SIAM President Shailesh Chandra stated, “The Indian Automobile Industry continued its steady performance in FY25, driven by healthy demand, infrastructure investments, supportive Government policies, and continued emphasis on sustainable mobility.”

Rajesh Menon, SIAM Director General, emphasized the milestone achievement, noting, “Sales of Passenger Vehicles have been the highest ever in FY25.”

India’s vehicle exports also witnessed a significant rise, up by 19.2%.

Passenger vehicle exports grew 14.6% to 7.7 lakh units, driven by demand from Latin America, Africa, and developed markets.

Two-wheeler exports grew 21.4% to 42 lakh units, and commercial vehicle exports increased by a robust 23% to 0.81 lakh units.

Segment-Wise Domestic Performance

The two-wheeler segment posted healthy growth with sales reaching 1.96 crore units, a 9.1% rise.

Within this, scooter sales saw a remarkable 17.4% jump. Three-wheelers clocked their highest-ever domestic sales at 7.41 lakh units, with a 6.7% increase over FY24.

However, commercial vehicle domestic sales saw a marginal dip of 1.2%, settling at 9.57 lakh units for the year.

Encouragingly, the segment rebounded in the January–March 2025 quarter with a 1.5% growth.

March & Q4 Trends

March 2025 figures reflected strong year-end performance:

• Passenger Vehicles: 3,81,358 units (up 3.6%)
• Two-Wheelers: 16,56,939 units (up 11.4%)
• Three-Wheelers: 62,813 units (up 10.5%)

Total domestic sales in Q4 FY25 stood at 61.82 lakh units, with two-wheelers accounting for 45.67 lakh.

Electric mobility showed sustained momentum in FY25. EV registrations increased 16.9% to 19.7 lakh units.

Electric passenger vehicles crossed 1 lakh registrations (up 18.2%), while electric two-wheelers saw a 21.2% jump to 11.5 lakh units. Electric three-wheeler registrations rose 10.5% to nearly 7 lakh units.

With strong domestic demand, export growth, and a push towards electrification, India’s auto industry is poised for continued expansion in FY26.

Also Read: India’s Passenger Vehicle Sales Hit Record High In FY25, Fueled By Utility Vehicle Boom