India's Passenger Vehicle Sales Reach Record 43 Lakh Units in FY25, Report Reveals

India's car industry achieved an all-time high in the March 2025 financial year when passenger vehicle sales hit a historic high of 43 lakh units, as per the latest information from the Society of Indian Automobile Manufacturers (SIAM). The figure is an increase of 2 percent from the last financial year.

One of the significant drivers of growth was the soaring demand for utility vehicles, now constituting 65 percent of all passenger car sales, rising from 60 percent in the last financial year. This surge was due to the launch of new models, added features, and enticing promotions for customers.

"Straightforward government policies, buoyant market sentiments, and emphasis on sustainable mobility by the industry, coupled with strong demand, investments in roads, and governmental policies, steered the sales," SIAM said. The association also underlined that right economic policies and good market sentiment contributed significantly in maintaining growth in the year-long period.

On the export front, passenger vehicle exports achieved their highest ever figure of 7.7 lakh units, representing a 14.6 percent increase over last year. This was mainly contributed by the increasing export of Indian-made global models, especially to Latin American and African markets.

Two-wheeler segment too witnessed a strong recovery, expanding by 9.1 percent to 1.96 crore units during FY25. Three-wheeler sales also touched a record high, crossing 7.4 lakh units, a growth of 6.7 percent, over the earlier record during FY19. The two-wheeler segment growth was mainly led by scooters, supported by improved rural and semi-urban connectivity and the presence of new, feature-loaded models.

Yet, commercial vehicle sales declined marginally by 1.2 percent compared to the previous year. Still, there was a marginal pick-up in the last quarter, which registered a 1.5 percent growth.

Domestic automobile sales recorded a 7.3 percent increase overall, while exports in all vehicle segments rose by 19.2 percent during the March 2025 financial year.