Passenger vehicle sales were driven by continued demand for utility vehicles, which comprised 65 per cent of all cars sold in the country, up from 60 per cent in FY24.
PUNE: Passenger vehicles (PV) posted its highest ever sales in FY25 clocking 4.3 million units, growing 2 per cent over FY24 (42 million units). The utility vehicles accounted for 65 per cent of the total sales in this segment.
The high base effect of FY24 resulted in moderate growth, the Society of Indian Automobile Manufacturers or SIAM said on Tuesday.
Promotional offers and discounts helped support demand last fiscal, when sales growth rate more than halved from 8.4 per cent registered in FY24.
In absolute volumes, though, automakers in India reported record sales in the segment for the third consecutive year.
Passenger vehicle sales were driven by continued demand for utility vehicles, which comprised 65 per cent of all cars sold in the country, up from 60 per cent in FY24.
Utility vehicle sales grew 11 per cent to 27,97,229 units in FY25 as compared to 25,20,691 units in FY24.
The passenger vehicle segment also recorded its highest-ever exports in FY25, reaching 0.77 million units, a 15 per cent increase compared to FY24, SIAM said.
It said growth in exports has been driven by the demand of global models being manufactured in the country.
Two-wheeler dispatches to dealers rose 9 per cent to 1,96,07,332 units in the last fiscal year, up from 1,79,74,365 units in FY24.
Improved rural demand and resurgence in consumer confidence are helping the segment to recover, SIAM noted.
Growth in the two-wheeler segment is led by scooters due to improved rural and semi-urban connectivity and the availability of newer models with enhanced features, it pointed out.
SIAM also said the share of EVs in overall two-wheelers has crossed the 6 per cent mark in 2024-25 fiscal.
However, total commercial vehicle wholesales declined 1 per cent last fiscal year to 9,56,671 units as against 9,68,770 units in 2023-24 fiscal.
But three-wheeler dispatches rose 7 per cent to 7,41,420 units as compared to 6,94,801 units in FY24.
"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,” said Shailesh Chandra, president at SIAM.
"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," Chandra said.
Overall sales across categories rose 7 per cent to 2,56,07,391 units last fiscal as against 2,38,57,411 units in FY24.
In March, passenger vehicle dispatches rose 4 per cent year-on-year to 3,81,358 units. Two-wheeler sales were up 11 per cent year-on-year to 16,56,939 units, while three-wheeler dispatches rose 10 per cent to 62,813 units as compared to March 2024.
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, SIAM noted.
