India’s Passenger Vehicle Sales Hit Record 43 Lakh in FY25: SIAM

India's passenger vehicle sales in FY25 disappeared to soar high, thereon-the graph marking a phenomenal 43 lakh units, with utility vehicles showing the strong growth drive for the sector: SIAM.

According to the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales in India attained record sales of 4 million units last fiscal year 2024-25.

This is with an increase of 2 percent over the previous year, while utility vehicles remain the primary growth engine within the passenger vehicle segment. Their share in all sales increased to 65 percent in FY 2024-25 from about 60 percent in the past fiscal.

"In FY 2024-25, passenger vehicles attained the highest ever sales of 4.3 million units, representing an increase of 2 percent as compared to FY 2023-24," said SIAM.

It also added that new model launches with modern designs and advanced features attracted more buyers. Alongside attractive discounts and promotional offers kept the demand flow of the products alive. As per the data, the export of passenger vehicles also reached the highest-ever at 0.77 million units for the year.

This translates to an increase of 14.6% over FY 2023-24. The uptick in exports was driven by the demand for some global models manufactured in India, especially in the Latin American and African markets, while some automakers even commence their exports to developed nations.

Thus, the overall growth witnessed over 7.3% growth in Indian automobile domestic sales and the exports saw a whopping 19.2% growth. SIAM attributed the performance to strong customer demand, government support, investment in infrastructure, and a focus on sustainable mobility. Economic policies, market sentiment, and other factors lent their weight to sustaining this growth.

During FY 2024-25, sales of two-wheelers witnessed a robust recovery, with sale units clocking in at 19.6 units, an increase of 9.1 percent. Improvement in rural demand and rising consumer confidence played a key role in this growth. Growth in the scooter segment was supported by better connectivity in rural and semi-urban areas and the launch of new models with better features.

The year also saw some traction for EVs, whose share in total two-wheeler sales crossed 6 percent during the fiscal year. Two-wheeler exports grew briskly by 21.4 percent to reach 4.2 million units, courtesy of new product launches and increased demand in Africa and Latin America.

The auto sector is expected to continue its growth in FY 2025-26, as per SIAM. This growth would get a push from stable economic conditions, proactive governmental policies, and infrastructure spending. A normal monsoon would also be a growth booster, especially for demand in rural and semi-urban areas.