Indian Auto Industry Starts 2025 with Record Passenger Vehicle Sales Amid Mixed Segment Performance.
13 Feb 2025 | 2652 Views | By Sarthak Mahajan
The Indian automobile industry started 2025 with mixed performance across segments, as passenger vehicles achieved their highest-ever January sales while two-wheeler segments showed divergent trends, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM).
Passenger vehicle sales grew by 1.6% year-on-year to reach 3.99 ...
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The Indian automobile industry started 2025 with mixed performance across segments, as passenger vehicles achieved their highest-ever January sales while two-wheeler segments showed divergent trends, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM).
Passenger vehicle sales grew by 1.6% year-on-year to reach 3.99 lakh units in January 2025, marking a historic high for the month despite excluding data from luxury carmakers BMW, Mercedes, JLR, and Volvo.
The two-wheeler segment presented a contrasting picture. While overall sales increased by 2.1% to 15.26 lakh units, this growth was primarily driven by a robust 12.4% surge in scooter sales to 5.48 lakh units. However, motorcycle sales declined by 3.1% to 9.36 lakh units, suggesting continued weakness in rural markets. Moped sales also registered a marginal decline of 0.4% to 41,872 units.
The three-wheeler sector demonstrated strong recovery with a 7.7% growth to 58,167 units. Within this segment, passenger carriers led the growth with a 10.4% increase to 46,674 units, while goods carriers showed minimal growth of 0.3% to 10,029 units. However, the electric segment within three-wheelers showed concerning trends, with e-rickshaw sales dropping by 20.6% to 1,002 units, though e-cart sales grew by 5.5% to 462 units.
Production figures remained robust, with total production across categories reaching 25.46 lakh units in January 2025, reflecting manufacturers' optimism about future demand. The quadricycle segment, however, saw a dramatic decline of 97% to just one unit, raising questions about the segment's viability in the Indian market.
SIAM's Director General, Rajesh Menon, attributed the positive performance to recent policy measures, noting that "The recent Union Budget announcements prioritizing long-term economic growth and particularly the personal income tax changes and reduction in interest rates by the RBI would help in boosting consumer confidence and drive demand in the Auto Industry."
The data reveals several key trends in the Indian automotive market. The strong performance in scooter sales, contrasting with declining motorcycle sales, suggests a shift in urban mobility preferences and possibly indicates improving urban consumer sentiment. However, the continued weakness in motorcycle sales, traditionally strong in rural areas, points to ongoing challenges in rural economic recovery.
The three-wheeler segment's growth, particularly in passenger carriers, indicates increasing mobility demand in last-mile connectivity and commercial transportation. However, the significant decline in e-rickshaw sales raises concerns about the pace of electric mobility adoption in the commercial segment.
Looking ahead, the industry's growth trajectory will likely be influenced by several factors, including interest rates, fuel prices, and the pace of economic recovery, particularly in rural areas. The recent budget announcements and RBI's rate cuts could potentially boost consumer sentiment and drive demand in the coming months, though the impact may vary across segments.