The Indian automotive sector experienced a decline of 6.4 percent year-on-year in domestic sales for February 2025. This decrease is primarily linked to a reduction in two-wheeler sales. Conversely, both the passenger vehicle and three-wheeler segments reported modest growth in the domestic market.

In February 2025, total sales reached 1.773 million units, a decrease from 1.895 million units sold in the same month the previous year. Rajesh Menon, Director General of SIAM, noted that the upcoming celebrations of Holi and Ugadi in March are expected to sustain demand, potentially allowing the fiscal year 2024-25 to conclude on a relatively positive note.

Examining the cumulative data from April to February reveals a more favorable outlook. The industry recorded total domestic sales of 22,450,972 units from April 2024 to February 2025, compared to 20,867,634 units sold during the same period the previous year, reflecting a year-on-year growth rate of 7.6 percent.

According to data from the Society of Indian Automobile Manufacturers, the passenger vehicle segment achieved sales of 377,000 units in February, up from 370,000 units sold in the same month last year, resulting in a year-on-year growth of 1.93 percent for this segment. From April 2024 to February 2025, a total of 3.821 million passenger vehicles were sold, compared to 3.742 million units during the same timeframe last year, yielding a year-on-year growth of 2.1 percent.

Notably, in February 2025, utility vehicles, which encompass SUVs and MPVs, accounted for 208,000 units sold, representing approximately 63 percent of total passenger vehicle sales. In contrast, the previous February saw the utility vehicle segment contributing 59.9 percent. Furthermore, from April to February 2025, utility vehicles made up about 64.6 percent of total passenger vehicle sales, compared to 59.1 percent during the same period the previous year.

Mixed bag for two wheelers

The passenger vehicle sector has experienced growth, whereas the two-wheeler segment encountered a decline in February 2025. According to the SIAM report, domestic sales of two-wheelers reached 1,384,605 units during the month, a decrease from 1,520,761 units sold in the same month the previous year. This represents a year-over-year decline of 9 percent.

Conversely, from April 2024 to February 2025, the two-wheeler segment recorded an increase of nearly 9 percent year-over-year in domestic sales. During this period, a total of 17,950,393 units were sold domestically, compared to 16,486,786 units sold in the corresponding timeframe the previous year.

Growing exports market

In February 2025, domestic sales experienced a decline; however, exports demonstrated a notable increase. According to data from SIAM, the industry recorded an overall year-on-year growth of 16.1 percent in exports for the month. Notably, the two-wheeler segment emerged as the primary driver of this export growth, achieving a remarkable 19.3 percent increase with 391,408 units exported, compared to 328,082 units in the same month the previous year. Additionally, the passenger vehicle segment reported a year-on-year export growth of 4.9 percent, totaling 56,638 units for the month.

From April to February 2025, the industry experienced an overall year-on-year increase of 19.7 percent in exports. Within this period, the two-wheeler segment's exports rose by 22.4 percent year-on-year, while passenger vehicle exports saw a 13.6 percent year-on-year increase.

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