India's Passenger Vehicle Sales Hit Record 4.3 Mn In FY25

(MENAFN- KNN India) New Delhi, Apr 15 (KNN) India's passenger vehicle market achieved unprecedented sales of 4.3 million units in the financial year 2024-25, setting a new record according to data released by the Society of Indian Automobile Manufacturers (SIAM). This represents a 2 percent growth compared to the previous fiscal year.

Utility Vehicles (UVs) continued to be the primary growth driver in the passenger vehicle segment, with their market share expanding to 65 percent in FY 2024-25, up from approximately 60 percent in the previous year.

SIAM noted that new model launches featuring modern designs and advanced features attracted more buyers, while attractive discounts and promotional campaigns helped sustain demand.

The passenger vehicle sector also recorded its highest-ever exports, reaching 0.77 million units-a significant 14.6 percent increase over FY 2023-24.

This export growth was fuelled by demand for India-manufactured global models, particularly in Latin American and African markets, with some automakers beginning to export to developed nations as well.

Overall, the Indian automobile industry experienced 7.3 percent growth in domestic sales alongside a robust 19.2 percent increase in exports.

SIAM attributed this strong performance to sustained customer demand, government support, infrastructure investments, and an increasing focus on sustainable mobility, all supported by positive economic policies and healthy market sentiment.

Two-wheeler sales demonstrated substantial recovery with 19.6 million units sold in FY 2024-25, growing by 9.1 percent. Improved rural demand and rising consumer confidence were key factors in this growth.

The scooter segment led this recovery, benefiting from enhanced connectivity in rural and semi-urban areas and the introduction of new models with improved features.

Electric vehicles made notable progress in the two-wheeler segment, with their market share exceeding 6 percent during the year.

Two-wheeler exports grew impressively by 21.4 percent to reach 4.2 million units, driven by new product launches and increased demand from African and Latin American markets.

Looking forward, SIAM anticipates continued growth for the automotive sector in FY 2025-26.

This optimistic outlook is based on stable economic conditions, proactive government policies, and ongoing infrastructure investments.

The forecast of a normal monsoon is expected to further stimulate demand, particularly in rural and semi-urban regions.

(KNN Bureau)

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