Auto sales rise 7.3% in FY25, expected to maintain growth momentum, says SIAM

Indian automobile industry domestic sales in FY25 grew 7.3% to 2,56,07,391 units compared with 2,38,57,411 units in FY24, while exports rose 19.2%, reflecting strong global demand, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.

“The performance was driven by healthy demand, infrastructure investments, supportive government policies, and continued emphasis on sustainable mobility. Sound economic policies and positive market sentiment helped in maintaining growth,” SIAM said in a statement. 

During the financial year, passenger vehicles (PV) posted the highest ever sales of 43 lakh units, a growth of 2% over the previous year.

The high base effect of FY24 resulted in moderate growth in FY25, SIAM said. Utility vehicles (UVs) continued to drive growth, contributing 65% of the total PV sales against 60% in FY24.

Discounts and promotional offers announced during the year supported growth momentum and helped sustain volumes, SIAM said.

PVs also saw their highest ever exports in FY25 at 7,70,000 units registering a growth of 14.6% as compared with FY24.

Growth in exports has been driven by the demand of global models being manufactured in the country, it added.

Two-wheelers, which registered sales of 1.96 crore units, reflected a good growth momentum at 9.1% over FY24 due to improved rural demand. Growth was led by the scooter segment. The share of EVs in overall two-wheelers crossed 6% in FY25.

During the year, two-wheeler exports grew 21.4% as compared with the previous year, with a total of 42 lakh units.

Economic stability in the African region and demand in Latin America supported growth, SIAM said. Three-wheelers posted the highest-ever sales in FY25 at 7.4 lakh units, a growth of 6.7% over the previous year.

Three-wheeler exports grew 2.3% at 3.1 lakh units.  Commercial vehicles experienced a de-growth of 1.2%. Exports grew 23% at 0.81 lakh units.

On the outlook, SIAM said all segments of the industry should continue with growth momentum in FY26 due to “stable macroeconomic conditions, proactive government policies, and Infrastructure spending by the government.” 

“A normal monsoon, as currently forecasted 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,” it said.

Total EV registrations during the year reached 19.7 lakh units compared with 16.8 lakh units in FY24, up 16.9%. Electric PV registrations crossed 1 lakh units in FY25, up 18.2% over the previous year. 

Shailesh Chandra, President, SIAM said, “The Indian automobile Industry continued its steady performance in FY25. PV, two-wheelers and three wheelers grew in FY25 compared with FY24, but growth rates have been varied across segments.”

“Looking ahead, the backdrop of stable policy environment, along with recent measures such as reforms in personal income tax and RBI’s rate cuts, will help in supporting consumer confidence and demand across segments,” he added.