Indian Auto Industry Reports Revenue of ₹20 Lakh Crore at 65th SIAM Annual Convention

The Indian automotive industry generated revenues exceeding ₹20 lakh crore in the last financial year whilst supporting 30 million livelihoods, according to industry figures shared at the 65th SIAM Annual Convention.

Speaking at the event focused on sustainable mobility, SIAM President Shailesh Chandra highlighted the sector's significant economic contribution, including ₹3.37 lakh crore in GST revenues and an additional ₹88,000 crore from motor vehicle taxes.

The industry welcomed the government's recent decision to reduce GST rates on vehicles, which Chandra said would benefit consumers and boost momentum in Indian automotive markets, particularly helping first-time buyers and middle-class families access personal mobility.

Strong Performance Across Segments

The passenger vehicle segment recorded its highest-ever sales of 4.3 million units in FY 2024-25, representing 2% growth over the previous year. Exports from this category also reached record levels at 700,000 units, showing 14.6% year-on-year growth.

Two-wheeler domestic sales recovered with 9.1% growth to 19.6 million units, though still below the previous peak of 21 million units achieved in FY 2019. Exports increased by 21.4% to 4.2 million units.

The three-wheeler industry achieved domestic sales of 7.4 lakh units, surpassing its earlier FY 2019 peak of 7.01 lakh units with 6.7% growth. Exports also rose by 2.3% to 3.1 lakh units.

Commercial vehicle domestic sales declined marginally by 1.2% to 9.57 million units, though exports grew strongly by 23% to 81,000 units.

Sustainability Initiatives

SIAM has advanced six major campaigns focused on sustainable mobility, decarbonisation and safety. The industry successfully transitioned to BS-VI emission standards from April 2025, supporting the government's goals of reducing fuel imports and improving air quality.

Electric vehicle adoption continued growing across all segments, with two-wheeler EV registrations reaching 1.97 million units compared to 1.68 million in 2023-24, showing 16.9% growth supported by government promotion schemes.

The industry is also supporting infrastructure development for alternative fuels, including compressed natural gas for long-haul heavy-duty trucks and green hydrogen technology for buses and trucks on a pilot basis.

Vehicle Scrapping and Safety

Under the government's Vehicle Scrapping Policy, the industry is supporting the modernisation of India's vehicle fleet by offering incentives for scrapping older, polluting vehicles.

SIAM launched a road safety education programme in collaboration with 1,250 driving training institutes to educate over 1.5 million students across India.

Future Plans

The industry is preparing for the third Bharat Mobility Global Expo, scheduled from 4-9 February 2027. The previous expo, held in January 2025, attracted 34 vehicle manufacturers, featured 90 product launches, and drew 8.44 lakh visitors.

SIAM is working with the Ministry of Heavy Industries on developing an Automotive Mission Plan covering 2025-2047, which aims to contribute to India's vision of becoming a developed nation by 2047.