Passenger vehicle sales hit record 4.3 million units in FY25

 India’s passenger vehicle sales set a new record of 4.3 million units in FY 2024-25, reflecting a 2% increase, primarily driven by Utility Vehicles. Exports surged 14.6% to 0.77 million units, supported by robust global demand. The auto industry as a whole grew 7.3% in domestic sales and 19.2% in exports, with two-wheeler sales rebounding strongly and electric vehicles gaining momentum.

In the financial year 2024-25, passenger vehicle sales in India reached a record high of 4.3 million units, marking a 2% increase from the previous year, according to the Society of Indian Automobile Manufacturers (SIAM). Utility Vehicles (UVs) were the primary growth driver, accounting for 65% of total sales—up from 60% in the previous year. This growth was fueled by the launch of new models with modern designs and advanced features, along with attractive discounts and promotional offers.

Passenger vehicle exports also hit an all-time high at 0.77 million units, a 14.6% increase over FY 2023-24. This was supported by strong demand for India-manufactured global models in Latin American and African markets, and even exports to some developed countries.

The overall Indian automobile industry posted a 7.3% growth in domestic sales and a robust 19.2% rise in exports. SIAM attributed this strong performance to high customer demand, government support, infrastructure development, and growing focus on sustainable mobility. Favorable economic policies and positive market sentiment further contributed to the sector’s momentum.

Two-wheeler sales also saw significant recovery, with 19.6 million units sold—up 9.1% year-on-year. This growth was driven by rising rural demand and improved consumer confidence, especially in the scooter segment, aided by better rural connectivity and upgraded models. Electric two-wheelers gained popularity, with their share surpassing 6% of total two-wheeler sales. Two-wheeler exports surged 21.4% to 4.2 million units due to new product offerings and rising demand in African and Latin American markets.

SIAM expects the auto sector to continue growing in FY 2025-26, driven by stable economic conditions, supportive government policies, and increased infrastructure investments. A normal monsoon, as predicted, is also likely to boost demand, especially in rural and semi-urban areas.