Diverse Trends Mark Indian Automobile Sector in Q2 FY25

The Indian automobile sector witnesses a 1.8% decline in passenger vehicle sales in Q2 FY25, with passenger cars dropping by 20%. While commercial vehicle sales also fall, two-wheelers shine, recording significant growth, particularly scooters and motorcycles. E-rickshaw sales face a sharp downturn, highlighting contrasting market dynamics.

Sales of passenger vehicles in India witnessed a noteworthy decline in the second quarter of FY25, according to the Society of Indian Automobile Manufacturers (SIAM). The figures reveal a 1.8% drop, with 10,55,137 units sold, and passenger cars falling by an alarming 20%. Conversely, utility vehicle sales increased by 9% year-over-year.

The declining trend wasn't confined to passenger vehicles. Goods carriers experienced a substantial 15.8% drop, selling 69,514 units, down from 82,538 units in the corresponding period last year. Light commercial vehicles were not spared either, as they saw a 10.2% decline compared to the previous year, with sales of 1,38,234 units between July and September.

Despite the slump in key segments, the two-wheeler market showed resilience. Scooter sales surged by 16.9%, selling 18.32 lakh units, while motorcycle sales rose by 10.2%, reaching 32.09 lakh units. However, the e-rickshaw sector struggled, facing a 30.7% drop in sales. This mixed performance highlights the varied challenges and opportunities within India's auto sector for Q2 FY25.

(With inputs from agencies.)