Record Surge in Indian Vehicle Dispatches Fuels Auto Industry Growth

Passenger vehicle dispatches in India reached record levels in FY25, with utility vehicles leading the growth, according to SIAM. Two-wheeler sales also surged, driven by scooters and improved rural connectivity. The overall industry's steady performance is attributed to robust demand, supportive policies, and rising exports.

In a landmark achievement for the Indian automobile industry, passenger vehicle dispatches rose to record levels of over 43 lakh units in FY25, as reported by industry body SIAM. Utility vehicles drove the growth, accounting for 65% of total sales in the segment.

The fiscal year witnessed a 2% increase in passenger vehicle dispatches, climbing to 43,01,848 units compared to 42,18,750 units in the previous year. Despite a high base effect from FY24, utility vehicles recorded a significant 11% growth, highlighting a continuing demand for these models.

The industry saw its highest-ever exports, with passenger vehicle exports reaching 0.77 million units—a 15% increase. Two-wheeler dispatches also soared by 9%, driven by scooters and enhanced consumer confidence. The steady industry performance is credited to supportive government policies, infrastructure investment, and a focus on sustainable mobility.

(With inputs from agencies.)