Two-Wheelers Power 5.6% Growth in September Auto Sales; Passenger Vehicles Stay Flat

India’s automobile industry reported a steady 5.6 percent growth in domestic sales in September 2025, with total wholesale volume rising to 25,57,757 units, compared to 24,21,368 units a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

The uptick was led primarily by the two-wheeler segment, which recorded 21,60,889 units, up from 20,25,993 units last September — a 6.7 percent year-on-year increase. Within this, motorcycle sales rose to 13,73,750 units (from 12,98,610 units), while scooters grew to 7,33,391 units (from 6,72,414 units), indicating firm demand recovery in both rural and urban markets. Mopeds, however, remained subdued at 53,748 units, slightly below last year’s 54,969 units.

In contrast, Passenger Vehicle (PV) sales remained largely stagnant, slipping by 0.9 percent to 3,12,791 units, as against 3,15,689 units in September 2024. Utility Vehicle (UV) sales, which typically drive the segment, softened marginally to 2,04,392 units from 2,06,217 units, while passenger cars held steady at 98,364 units, barely changed from 97,564 units last year. Vans witnessed a sharper fall, declining to 10,035 units from 11,908 units, suggesting continued weakness in lower-end consumer segments.

The three-wheeler category posted moderate growth, with sales climbing 5.5 percent to 84,077 units from 79,683 units. Passenger carriers accounted for 71,657 units, up from 65,826 units, while goods carriers dipped slightly to 10,442 units. Electric models such as e-rickshaws and e-carts saw notable declines, pointing to subsidy transitions and financing challenges.

"The PV industry decline is also due to the wait-and-watch approach of customers before the revised GST rates came up. The numbers will pick up in this festive month, and the PV industry will quite likely post at least 5-6 percent growth on an annual basis by March '26," according to Arun Malhotra, auto industry veteran.

With the festive season underway, automakers are eyeing stronger retail traction in October. However, the contrast between two-wheeler momentum and flat passenger vehicle demand suggests that rural sentiment is recovering faster than urban discretionary spending. Vehicle manufacturers may now also offer aggressive year-end discounting and introduce model refreshes to sustain momentum across categories.

At a Glance — Domestic Sales in September 2025