Indian Auto Industry Hits Milestone: Record Sales Surge with SUVs Leading the Charge

In FY 2024-25, India's passenger vehicle sales hit a record 4.3 million units, driven by a surge in utility vehicles. Exports also peaked, with a notable 14.6% increase. Strong domestic demand, supportive policies, and new models fueled this growth. Two-wheeler sales soared, aided by increased rural demand.

India's passenger vehicle sector has reached unprecedented heights, recording sales of 4.3 million units in the fiscal year 2024-25, as per the Society of Indian Automobile Manufacturers (SIAM). This figure marks a 2% increase from the previous year, with utility vehicles playing a pivotal role in this upward trajectory. Their market share climbed to 65%, up from 60% in the previous year.

The robust sales figures are attributed to the introduction of new models sporting modern designs and features, along with attractive discounts and promotional campaigns that spurred consumer interest. Furthermore, the fiscal year saw a remarkable rise in exports, achieving a record 0.77 million units—a 14.6% growth compared to the previous year—driven by international demand for Indian-made models, especially in Latin American and African markets.

Overall, the Indian auto industry witnessed a 7.3% domestic sales growth and a substantial 19.2% leap in exports. Experts credit this vigor to strong consumer demand, governmental infrastructure initiatives, and a heightened focus on sustainable mobility solutions. The two-wheeler segment also rebounded vigorously, with sales increasing by 9.1% to 19.6 million units. The growing rural demand and innovative model launches bolstered this segment, including electric two-wheelers that constituted over 6% of total sales. Looking forward, SIAM forecasts continued growth, buoyed by favorable economic conditions and infrastructure developments.

(With inputs from agencies.)