SUVs Drive 65% of 4.3 Million Passenger Vehicle Sales in FY 2024-25: SIAM

India’s passenger vehicle (PV) market achieved a milestone in the financial year 2024-25, with sales reaching an all-time high of 4.3 million units, according to data released by the Society of Indian Automobile Manufacturers (SIAM). This represents a modest 2 per cent year-on-year growth compared to FY 2023-24, driven largely by robust demand for utility vehicles (UVs).

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Utility vehicles, including compact and mid-sized SUVs, remained the primary growth engine in the segment. Their share in total passenger vehicle sales increased to 65 per cent, up from approximately 60 per cent in the previous fiscal year. SIAM attributed the record sales performance to several key factors, including the launch of new models featuring advanced technology, modern designs, and enhanced safety features. The industry body also noted that discounts and promotional schemes played a significant role in sustaining buyer interest throughout the year. 

Exports of passenger vehicles also reached a new peak in FY 2024-25, rising to 0.77 million units — a 14.6 per cent increase over the previous year. The surge in exports was primarily driven by strong international demand for Indian-manufactured global models, particularly in Latin American and African markets. Some automakers even expanded their export footprint to developed nations, further boosting outbound shipments.

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The overall Indian automobile industry registered a domestic sales growth of 7.3 per cent, while exports saw a robust 19.2 per cent increase. SIAM credited the growth to strong consumer demand, favourable government policies, sustained investments in infrastructure, and the expanding focus on sustainable mobility. Positive market sentiment and a stable macroeconomic environment also contributed to the sector’s resilience.

In the two-wheeler segment, sales rebounded sharply, reaching 19.6 million units — an increase of 9.1 per cent over the previous year. Improved rural demand and rising consumer confidence were cited as key contributors to this recovery. The scooter segment led the growth, bolstered by improved connectivity in rural and semi-urban regions and the launch of feature-rich models targeting these markets.

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Electric mobility made further inroads, with electric two-wheelers accounting for over 6 per cent of total two-wheeler sales during the year. This reflects growing consumer interest in EVs amid rising fuel prices, improved product offerings, and expanding charging infrastructure.

Two-wheeler exports also grew strongly, rising by 21.4 per cent to reach 4.2 million units. New product launches and heightened demand in key export destinations supported the increase, particularly in Africa and Latin America.

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Looking ahead, SIAM remains optimistic about the industry’s prospects in FY 2025-26. The association expects growth to continue, supported by stable economic conditions, ongoing infrastructure development, and proactive policy measures by the government. Additionally, a normal monsoon — as forecasted — is expected to stimulate demand in rural and semi-urban areas, further reinforcing momentum in the two-wheeler and entry-level vehicle segments.