Driven by record sales of passenger vehicles and three-wheelers, India Auto Inc clocked wholesales of 2,56,07,391 units in FY2025 – 658,788 units shy of the 26 million vehicles sold six years ago. While the two-wheeler industry, with 19.60 million units, posted 9% growth but still below its FY2019 high, the commercial vehicle segment was the only one to see a sales decline last fiscal.
15 Apr 2025 | 716 Views | By Ajit Dalvi
First the good news. The Indian automobile industry has registered total domestic market wholesales of 2,56,07,391 or 25.60 million units in FY2025, up 7.33% YoY (FY2024: 23.85 million units). Three of the four vehicle segments have posted growth with passenger vehicles and three-wheelers hitting their best-ever fiscal numbers, and the ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
First the good news. The Indian automobile industry has registered total domestic market wholesales of 2,56,07,391 or 25.60 million units in FY2025, up 7.33% YoY (FY2024: 23.85 million units). Three of the four vehicle segments have posted growth with passenger vehicles and three-wheelers hitting their best-ever fiscal numbers, and the two-wheeler industry up 9 percent. The commercial vehicle segment is the sold one to witness a decline in FY2025, down 1.25% on FY2024.
The not-so-good news is that India Auto Inc was 658,788 units short of its best-ever performance of 26.26 million units in FY2019, albeit it succeeded in reducing the gap which was 2.40 million units in FY2024 (see 11-year sales data table below)
FY2019 had seen all four vehicle segments – passenger vehicles, commercial vehicles, two- and three-wheelers – hit record highs, which had contributed to the mega sales. Of these four segments, the PV segment is the only one to have bettered its FY2019 performance of 3.37 million units. . . thrice, in FY2023 (3.89 million units), in FY2024 (4.21 million units) and once again in FY2025 (4.30 million units) which sets a new benchmark, thanks to the surging demand for SUVs.
The three-wheeler industry, which is the one with the fastest transition to electric mobility, has hit its best-ever fiscal numbers: 741,420 units, up 6.70% YoY. The two-wheeler industry, sold 19.60 million units to post 9% growth but remains 1.57 million units behind its FY2019 sales of 21.17 million units. The CV sector, with 956,671 units sold in FY2025 was down 1% YoY and 50,640 units behind its FY2019 sales (10,07,311 units) when it had surpassed the million-units mark for the first time.
PASSENGER VEHICLES
FY2025: 43,01,848 units, up 2% YoY
Utility Vehicles: 27,97,229 units, up 11% & accounts for 65% of PV sales
Of the 4.30 million PVs sold in FY2024, the UV sub-segment accounted for 27,97,229 units (up 11% YoY) or a 65% share, considerably improving upon the 60% share it had in FY2024 or the 51.50% share in FY2023. Importantly, as they have been doing for the past five-odd years, UV sales have buffered the sharp 13% decline in passenger car and sedan sales to 1.35 million units from 1.54 million units in FY2024. And they were 1.74 million in FY2023.
Compare the two vehicle categories’ market performance – while hatchback and sedan manufacturers sold 195,660 fewer vehicles in FY2025, SUV and MPV OEMs sold 276,538 units more last fiscal. According to SIAM, attractive discounts and promotional offers supported the growth momentum and helped sustain volumes. What also accelerated demand for SUVs is a good number of new models being launched. Electric vehicle retails also hit a new high of over 107,500 units in FY2025.
Driving the PV segment’s growth were best-ever fiscal performances by Maruti Suzuki India (1.76 million units but flat sales), Mahindra & Mahindra (551,487 SUVs, up 20%) and Toyota Kirloskar Motor (309,230 units, up 26%). Hyundai Motor India (553,585 units, down 3%) and Tata Motors (582,915 units, down 3%) also provided the ammo but saw YoY sales declines.
Not surprisingly, all these five OEMs with SUV-heavy portfolios have benefited from the wave of demand for SUVs. Maruti Suzuki (7,20,186 units) accounts for a market-leading 26% share of the 2.79 million UV sales in FY2024. Mahindra (551,487 units, 20% UV share) takes second position and Tata Motors is third (432,667 UVs, 15.46% share). Hyundai Motor India (410,199 units, 15.42% UV share) is followed by a resurgent Toyota Kirloskar Motor (258,537 units, 9% UV share).
TWO-WHEELERS: 1,96,07,332 units / up 9% YoY
Scooters share of 2W sales rises to 35%, bike share down 2% to 62%
Motorcycles, with 1,22,52,305 units and slower 5% growth compared to FY2024, accounted for 62% of total 2W industry sales in FY2025 but down on the 65% share bikes had in FY2024.
In comparison, scooter sales hit a record 6.85 million units, up 17% YoY and increased its share of 2W sales to 35% from 32% in FY2024. The scooter sales momentum was driven by improved demand in rural and semi-urban markets as well as availability of new models with enhanced features.
Demand for mopeds – the most affordable motorised two-wheeler – rose 4% to 501,813 units, crossing the half-a-million mark. Moped sales were at their highest in FY2017 (890,518 units, up 23% YoY)
THREE-WHEELERS: 741,420 units, up 7% YoY
Passenger carriers benefit from last-mile mobility needs
FY2025 saw a marked increase in demand for last-mile mobility solutions, in urban and semi-urban areas, while replacement demand and easier availability of financing also proved to be growth drivers.
Most of the demand is for passenger-ferrying autorickshaws (601,642 units, up 10%). Sales of goods carriers at 117,156 units were an increase of 5% YoY.
The three-wheeler industry is also seeing the fastest transition to electric mobility and as per Vahan retail sales data, every second three-wheeler sold in the country is now electric. In FY2025, electric 3W retail sales scaled a new high, narrowly missing the 700,000 mark.
COMMERCIAL VEHICLES: 956,671 units, down 1%
Demand for M&HCV and LCV goods carries slows down, uptick for buses
Combined M&HCV and LCV wholesales data reveals that the CV industry clocked 956,671 units, down 1.2% YoY (FY2024: 968,770 units) and is 50,640 units below this segment’s best-ever performance in FY2019 when it surpassed a million units (10,07,311) for the first time.
It is expected that the massive government as well as private sector spend in infrastructure development, mining and related activities will drive fresh demand in FY2026, particularly for HCVs. Demand for goods carriers, both M&HCV and LCV, was down in both M&HCV and LCV categories.
According to SIAM, though the overall trucks segment has witnessed a slight sales decline, the requirement for freight movement has been suitably served with fleets migrating towards higher GVW vehicles. The expanding highways and expressway network is playing a crucial role in reducing logistics costs and enhancing regional connectivity, which augurs well for this segment. There is also a growing focus on buses for inter-city travel and on mass-mobility in intra-city routes.
According to SIAM, all segments of the industry are expected to continue with the growth momentum in FY2025 due to stable macroeconomic conditions, proactive government policies, and infrastructure spending by the government.
A normal monsoon, as currently forecast for CY2025, is expected to support broader economic activity, especially in rural and semi-urban regions, which would be a tailwind for auto sector demand.
The sector will also benefit from the reforms in personal income tax announced in the Union Budget of FY2026, which has been followed by two back-to-back rate cuts by the Reserve Bank of India. These measures are expected to create demand by increased accessibility of vehicle financing.
Meanwhile, exports of made-in-India vehicles rose 19% YoY to 53,63,089 units, with all segments registering growth. SIAM states that “the automobile industry will closely monitor macroeconomic factors and global geopolitics, which will determine the key demand conditions, and supply chain dynamics going forward.”