India's passenger vehicle sales hit record high at 43 lakh units in FY25, utility vehicles driver of growth: Society of Indian Automobile Manufacturers (SIAM)

Passenger vehicle (PV) sales in India reached a historic high of 4.3 million units in FY25, marking a 2% increase over FY24, per data released by the Society of Indian Automobile Manufacturers (SIAM). Utility Vehicles (UVs) remained the primary growth driver, accounting for 65% of total PV sales, up from around 60% in FY24. This growth was supported by new model launches with modern designs and advanced features as well as attractive discounts and promotional schemes that sustained consumer demand. Notably, PV exports achieved their highest level, rising 14.6% YoY to 7.7 lakh million units, driven by global demand for India-manufactured models in Latin American and African markets. Some automakers even expanded into developed countries, strengthening India’s presence as a global manufacturing hub.

The Indian automobile industry recorded a 7.3% growth in domestic sales and a robust 19.2% rise in exports. Two-wheeler sales saw a significant rebound, with 19.6 million units sold in FY25 — a 9.1% increase YoY — led by scooters and supported by improved rural connectivity, growing consumer confidence, and product innovations. Electric vehicles (EVs) gained further traction, with their share in total two-wheeler sales exceeding 6%. Two-wheeler exports climbed 21.4% to 4.2 million units, bolstered by strong demand from Africa and Latin America. SIAM expects growth momentum to continue in FY26, aided by stable macroeconomic conditions, favourable policy support, infrastructure investments, and a forecasted normal monsoon.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.