Pune: Passenger Vehicles (PVs) had the highest ever sales of 4.3 million units in FY25, up 2% from FY24 (42 million units). Utilities account for 65% of the total sales in this segment.
The high base effect in fiscal 24 led to moderate growth, the Indian automaker or Siam Association said on Tuesday.
Promotional offers and discounts helped demand in the previous fiscal year, when sales growth was halved from 8.4% registered in FY24.
However, the Indian automaker reported record sales for the third consecutive year in absolute sales.
Passenger car sales are driven by ongoing demand for utility vehicles, with the ongoing demand for the tool that accounts for 65% of all cars in the country, up from 60% in FY24.
Utility vehicle sales rose 11% to 27,97,229 units in FY27, while 25,20,691 units in FY24.
Siam said the passenger car segment also recorded its highest ever exports of 770,000 units, a 15% increase from FY24.
It said export growth was driven by demand from a global model made in the country.
In the last fiscal year, two rounds of dispatches to dealers rose to 1,96,07,332 units, up from 1,79,79,74,365 units in FY24.
Siam notes that a revival of improving rural demand and consumer confidence is helping the segment recover.
It noted that the growth of the two-wheeled segment was led by scooters due to improved rural and semi-urban connectivity and the availability of newer models with enhanced functionality.
Siam also said that in fiscal 2024-25, electric vehicles had more than 6% of the overall two-wheeler share.
However, the total total commercial vehicle wholesale total fell 1% to 9,56,671 units in the last fiscal year, compared with 9,68,770 units in the 2023-24 fiscal year.
However, the three-wheel dispatches rose 7% to 7,41,420 units, compared with 6,94,801 units in the fiscal year 24.
“India’s automotive industry continues to perform stably in fiscal 25 amid health needs, infrastructure investment, supportive government policies and the continued emphasis on sustainable transportation,” said Siam President Shailesh Chandra.
“Looking forward, the background of a stable policy environment and recent measures such as personal income tax and the RBI’s tax cuts will help support consumer confidence and demand in various segments,” Chandra said.
Overall sales in the last fiscal year increased by 7% to 2,56,07,391 units, while 2,38,57,411 units in FY24.
In March, passenger cars rose 4% year-on-year to 3,81,358 units. Compared with March 2024, sales of two-wheelers increased by 11% year-on-year to 16,56,939 units, while sales of three-wheel dispatch increased by 10% to 62,813 units.
Siam noted that a normal monsoon is currently expected to be expected in 2025 and is expected to support wider economic activity, especially in rural and semi-urban areas, which will be a headwind of demand for the automotive industry.
