The Indian auto industry recorded strong growth across all segments in the first quarter of FY25, driven by overall economic growth and special impetus from rural areas, data from the Society of Indian Automobile Manufacturers showed on Friday. Notably, the sales in the passenger vehicles category crossed one million units for the first time in Q1 FY25.
SIAM registered a 3 per cent increase with 1,026,006 units sold as against the same period last year. Utility vehicles contributed 18 per cent while vans registered a 9.2 per cent growth.
The two-wheeler segment fared exceedingly well, growing by 20.4 percent to almost five million units. Scooters formed the mainstay of this growth, with 28.2 percent point gain, closely followed by motorcycle and mopeds.
The three-wheeler segment posted a growth of 14.2 percent with sales at 165,081 units—also the best Q1 outlay—driven by both passenger and goods carriers.
According to SIAM President Vinod Aggarwal, "The automotive sector has shown resilience and turned around tough times with ample resolve and is all geared up to stay on its growth track, riding both on domestic demand recovery and promising export conditions." On an optimistic note, he pointed to the good monsoon forecast and approaching festival season as reasons to cheer for growth.
Growth rate in commercial vehicles was on an upbeat track also as the segment's sales climbed 3.5 percent to 224,209 units. Total passenger vehicle production in June by the Indian auto industry was 2,336,255 units.
On the export front, while passenger vehicle exports increased by 18.6 percent during the April-June quarter, utility vehicles accounted for a big slice at 40.2 percent. According to the report, M&HCVs and LCVs grew by 11.3 percent and 6.3 percent respectively in exports.
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