Mixed Signals: Ups and Downs in India's Auto Industry for March 2025

March 2025 saw varied performances in India's auto industry. Passenger vehicle sales grew 5%, with Toyota, Kia, and M&M driving success, while Hyundai and Maruti Suzuki faced declines. Commercial vehicles had modest gains. The 2W and tractor segments thrived with strong YoY growth, fueled by rural demand and government incentives.

The Indian automobile industry experienced a blend of triumph and turbulence in March 2025. Two-wheeler and tractor segments saw substantial gains while commercial and passenger vehicles offered mixed outcomes, a report by Axis Securities highlights.

The passenger vehicle segment grew by approximately 5% year-on-year, propelled by remarkable figures from Toyota, Mahindra & Mahindra (M&M), and Kia, which saw increases of 13%, 18%, and 19% respectively. Conversely, Hyundai and Maruti Suzuki encountered downturns, with Hyundai's domestic sales declining 2% YoY and Maruti Suzuki's overall sales dipping 1% due to a 3% drop in entry-level models. Tata Motors achieved modest growth of 3% YoY.

Commercial vehicles recorded slight gains of 2% YoY, with a robust 23% monthly increase. Within this sector, VECV, M&M, and Ashok Leyland posted growth rates of 6%, 14%, and 6% YoY, respectively, although Maruti Suzuki's CV sales plummeted 34% YoY and Tata Motors decreased by 4%. The report forecasts single-digit growth in FY26, driven by bus segment demand.

The two-wheeler market surged, led by TVS, Suzuki, and Royal Enfield with gains of 14%, 33%, and 23% YoY, respectively. Export markets remained strong, with TVS, RE, and Suzuki Motorcycles seeing upward trends of 22%, 36%, and 15% YoY, respectively. Further growth is expected, driven by new launches and government incentives.

Tractor sales soared 32% YoY, led by M&M and Escorts at 34% and 15% increases, respectively. Projections for FY26 suggest sustained momentum supported by favorable agricultural conditions and government policies.

(With inputs from agencies.)