India's passenger vehicle sales hit record high at 43 lakh units in FY24-25, utility vehicles driver of growth: SIAM

This marks a 2 per cent increase compared to the previous year, Utility Vehicles (UVs) remained the key growth driver in the passenger vehicle segment. Their share in overall sales rose to 65 per cent in FY 2024-25, up from around 60 per cent in the previous year.

SIAM said "Passenger Vehicles (PV) posted its highest ever sales in FY 2024-25 of 4.3 million units, with a growth of 2 per cent as compared to FY 2023-24".

It also added that new model launches with modern designs and advanced features attracted more buyers. Additionally, attractive discounts and promotional offers helped keep up the demand.

As per data, passenger vehicles also saw their highest-ever exports during the year, reaching 0.77 million units.

This is a 14.6 per cent increase compared to FY 2023-24. The rise in exports was supported by demand for global models made in India, especially in Latin American and African markets. Some automakers even began exporting to developed countries.

Overall, the Indian automobile industry grew 7.3 per cent in domestic sales and saw a strong 19.2 per cent jump in exports.

SIAM credited this performance to strong customer demand, government support, infrastructure investments, and the growing focus on sustainable mobility. Positive economic policies and healthy market sentiment also helped sustain the growth.

Two-wheeler sales saw solid recovery, with 19.6 million units sold in FY 2024-25, showing a growth of 9.1 per cent. Improved rural demand and rising consumer confidence played a key role in this growth. The scooter segment led the way, thanks to better connectivity in rural and semi-urban areas and the launch of new models with better features.

Electric vehicles (EVs) also gained ground, with their share in total two-wheeler sales crossing 6 per cent during the year. Two-wheeler exports grew strongly by 21.4 per cent to reach 4.2 million units. This was due to new product launches and increased demand in Africa and Latin America.

Looking ahead, SIAM expects the auto sector to continue its growth in FY 2025-26. Stable economic conditions, proactive government policies, and infrastructure spending are likely to support this growth. A normal monsoon, as forecasted, is also expected to boost demand, especially in rural and semi-urban areas. (ANI)