The latest data released by the Society of Indian Automobile Manufacturers (SIAM) show that the Indian automotive industry wrapped up FY 2024-25 with a solid performance, driven by resilient domestic demand, an uptick in exports, and a renewed push toward green mobility.

While the pace of growth varied across segments, the industry overall clocked a healthy 7.3 percent increase in domestic sales, reinforcing its steady recovery trajectory in a post-pandemic economy.

The passenger vehicles segment posted its highest-ever annual sales, breaching the 4.3 million mark – a 2 percent rise over the previous year. Although the high base of FY 2023–24 tempered the growth rate, the segment continued to impress with its scale.

SUVs emerged as the dominant sub-segment, accounting for 65 percent of total PV sales, up from 60 percent last year.

The market responded enthusiastically to new launches and customer demand towards higher ground clearance models. It is also important to note that discounts and promotions kept demand buoyant.

On the exports front, a record 770,000 units were shipped, up 14.6 percent, fuelled by demand from Latin America, Africa and emerging interest from developed markets.

India’s ubiquitous two-wheelers rebounded strongly with 19.6 million units sold, marking a 9.1 percent growth over the previous year. The scooter category led the charge, boosted by improved rural and semi-urban road connectivity.

EV penetration crossed 6 percent, reflecting a growing preference for sustainable options.

Two-wheeler exports rose by 21.4 percent, supported by macroeconomic stability in Africa and expansion into Latin American markets.

The three-wheeler segment on the other hand scaled new highs with 741,420 units sold, a 6.7 percent growth over FY 2023–24. Urban and semi-urban demand for last-mile transport, especially electric models seem to have played a key role.

The commercial vehicles segment posted a slight 1.2 percent decline in annual sales, though Q4 offered a glimmer of hope with a 1.5 percent uptick. Light CVs struggled, while Medium & Heavy CVs (M&HCVs) remained steady. Infrastructure development spurred demand for buses and higher-GVW trucks.

CV exports jumped by 23 percent, indicating global recovery in freight mobility.

In terms of EV sales, the country saw 1.97 million green vehicles sold, up 16.9 percent, with electric two-wheelers seeing a 21.2 percent rise in registrations.

Looking Ahead: Optimism with Caution

The industry body stated that going forward leaders are cautiously optimistic about FY 2025–26. Normal monsoon forecasts are expected to aid rural demand. Recent personal income tax reforms and RBI rate cuts could boost vehicle financing and overall consumer sentiment. Continued export momentum, especially in Africa and neighbouring regions, will offer strategic resilience.

But on the other hand, challenges loom in the form of global geopolitical tensions and evolving supply chain dynamics.

Shailesh Chandra, President, SIAM, said, “The Indian automobile industry continued its steady performance in FY2024–25, driven by healthy demand, infrastructure investments, supportive government policies and continued emphasis on sustainable mobility. Passenger vehicles, two-wheelers and three-wheelers grew in FY2024-25 compared to FY2023-24, but growth rates have been varied across segments. Passenger vehicles and three-wheelers witnessed a moderate growth on account of the high base effect but saw the highest-ever sales in these categories, while the two-wheeler segment registered strong growth in FY2024-25. However, commercial vehicles witnessed a slight degrowth in the FY2024-25, though performance in recent months has been comparatively better. On the exports front, good recovery is seen across all segments, particularly passenger vehicles and two-wheelers reflecting improved global demand and India's growing competitiveness. In FY2024-25, the government of India introduced the PM E DRIVE scheme and PM e-Sewa schemes which underscores the firm commitment of the Government towards promoting sustainable mobility. Looking ahead, the backdrop of stable policy environment, along with recent measures such as reforms in personal income tax and RBI’s rate cuts, will help in supporting consumer confidence and demand across segments.

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Union Minister of Commerce & Industry, Piyush Goyal, inaugurated the Electric Vehicle (EV) Zone at the International Electrotechnical Commission's (IEC) 89th General Meeting in New Delhi on 15 September 2025. The exhibition, hosted by the Bureau of Indian Standards (BIS), runs until 19 September at Bharat Mandapam.

The EV Zone, organised by the Society of Indian Automobile Manufacturers (SIAM), showcases the country's progress in electric mobility. Goyal toured the pavilion, which features 31 production-ready electric vehicles from 14 major manufacturers, including Tata Motors, Mahindra & Mahindra and JSW MG Motor.

During the event, Minister Goyal emphasised that sustainability is a core pillar of India's growth strategy. He highlighted the importance of high-quality standards in protecting consumers and boosting the competitiveness of Indian-made products on the global stage. He also stated that ‘Design in India, Made in India’ products would soon be recognized globally for their reliability and excellence.

Prashant K Banerjee, Executive Director of SIAM, expressed appreciation for the government's vision, noting that the automotive industry is committed to this journey. The IEC GM 2025 has brought together over 2,000 global experts from more than 100 countries to discuss international standards, with the exhibition also featuring advancements in smart lighting, electronics, and IT manufacturing.

SIAM’s participation is part of its commitment to sustainable mobility and achieving India's Net Zero targets by 2070. Visitors to the EV Zone can also take a ‘Digital Sustainability Pledge,’ with BIS planting a sapling for each pledge made.

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The Federation of Automobile Dealers Associations (FADA) has released the results of its Dealer Satisfaction Study (DSS) 2025. The study, conducted in partnership with the Singapore-based consulting firm PremonAsia, was announced at the 7th Auto Retail Conclave on 10th September.

C.S. Vigneshwar, President, FADA, noted that the study provides a ‘true mirror’ to the relationship between dealers and OEMs. The study surveyed over 1,800 dealer principals, representing nearly 5,000 outlets across the country. For the first time, it was conducted in nine regional languages to ensure broader participation.

• JSW MG Motor captured the top position in the 4-Wheeler Mass Market segment with a score of 868 points.
• Royal Enfield led the 2-Wheeler segment with 852 points, followed by Hero MotoCorp. Both companies showed improvement from the previous year.
• Ashok Leyland retained its leadership in the Commercial Vehicle segment with 786 points.
• The 3-Wheeler segment was included again after three years, with Atul Auto topping the category with a score of 924 points.
• Volvo Cars topped the 4-Wheeler Luxury segment with 884 points.

The industry average dealer satisfaction score was 781, a 13-point increase from the previous year. Product continues to have the highest score across all categories, indicating dealers are largely satisfied with the quality, reliability and range offered by OEMs.

Rahul Sharma, Director and COO, PremonAsia, said, "close to two-thirds of dealer sentiment is shaped by after-sales service and viability factors. While after-sales service is the most important factor, Business and viability remains a key concern for dealers. Dealers cited issues such as buyback/write-off of unsold inventory, training cost-sharing arrangements and margins on vehicles and spare parts.”

Dealer satisfaction improved in the 2-wheeler segment compared to the previous year, but it declined in the 4-wheeler Mass Market and Commercial Vehicle segments. Vigneshwar stated that while the industry is performing well on product quality, structural issues like buyback policies, training costs and dealership viability cannot be ignored.

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The Society of Indian Automobile Manufacturers (SIAM), the apex body representing automakers in the country, has announced the wholesales for August 2025.

The automotive industry saw a total of 2.23 million vehicles sold last month, which was 5 percent higher than, 2.13 million units sold for the same period last year.

In fact, barring the passenger vehicle segment, almost all segments were in the green. The passenger vehicle with sales of 321,840 units, was down 9 percent, on the back of inventory correction and automakers recalibrating dispatches as the recent reduction in Goods & Services Tax (GST) comes into effect starting 22 September.

The three-wheeler segment reported its best-ever sales performance for August with a total of 75,759 units being sold, which was 8 percent higher YoY.

The two-wheeler segment reported a healthy 7 percent growth with a robust 1.83 million units sold, which includes 1.10 million motorcycles (+4 %) and 683,397 scooters (+13 percent).

Rajesh Menon, Director General, SIAM said, “Sales of passenger vehicles in August 2025 de-grew by (-) 8.8 percent, posting sales of 3.22 lakh units as compared to August of previous year, primarily due to recalibration of dispatches by passenger vehicle manufacturers. Three wheelers posted their highest ever sales of August in 2025 of 0.76 lakh units, with a growth of 8.3 percent as compared to August 2024. Two-wheeler segment grew by 7.1 percent in August 2025, as compared to August 2024, with sales of 18.34 lakh units. The landmark decision of government of India to reduce the GST rates on vehicles will go a long way in enabling broader access to mobility and inject fresh momentum into the Indian automotive sector in the upcoming festive season.”

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India’s automotive leadership used Society of Indian Automobile Manufacturers' 65th Annual Convention to signal continuity on emissions and safety policy, a pragmatic push on biofuels and electrification and a growing dependence on software-defined vehicles, while framing exports and supply-chain resilience as medium-term priorities.

Prime Minister Narendra Modi, in a special message, said India must achieve “true self-reliance across the entire automotive manufacturing value chain,” adding that “as the nation advances towards global leadership in green and smart transportation, opportunities for investment and collaboration are immense.”

Union Road Transport and Highways Minister Nitin Gadkari said, “We will maintain global alignment on BS7 and CAFE norms to address air pollution issues,” linking the shift to alternative fuels with macro-objectives: “Moving to biofuels helps in reducing India’s crude imports and enhances farmer incomes.”

He added, “For those aiding road accident victims, INR 25,000 will be awarded to Rakshaveers,” alongside ‘insurance up to 150,000 to accident victims,’ while stating that public campaigns and NGO engagement are ‘essential to improve human behaviour to prevent accidents.’

Gadkari also said logistics costs would ‘come down to single digit by year end,’ and cited scrappage progress with ‘more than 300,000 vehicles’ dismantled to date.

Industry capacity and localisation

Union Minister of Heavy Industries and Steel H. D. Kumaraswamy said the production-linked incentive scheme has drawn ‘more than INR 295 billion of capital investments,’ and that the steel ecosystem is working on ‘developing specialised steel for the auto sector to reduce its import dependence.’

Tarun Kapoor, Adviser to the Prime Minister, urged industry to partner with the Anusandhan National Research Foundation and to scale ‘biofuels, gaseous fuel and electric mobility’ and compressed biogas, while ‘working towards enhancing presence in global markets.’

Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries, noted government support to the EV ecosystem since 2015, the installation of ‘8,900+ public chargers’ and ‘around 10,900 e-buses,’ and called for investments in electric heavy vehicles.

Software-defined vehicles and AI

Rajan Wadhera, Member, SCALE Committee and former SIAM President, chaired the session on software-defined vehicles, where Dr Christopher Borroni-Bird, Founder, Afreecar (USA), said, “The path to SDVs is a major disruption for automakers.”

Dr Bird clarified distinctions between connected vehicles and fully software-defined platforms and noting rising software share in value.

A technology leader argued, “Generative AI is not simply another tool; it is a strategic enabler that is fundamentally shaping the Indian automotive sector, while acknowledging enterprise deployments are still early.”

Andreas Tschiesner, Senior Partner, McKinsey & Company, projected that “in 2035, we expect 30 percent of all produced vehicles will be built on zonal EE architectures, with cloud-managed development, AI-powered coding and virtual twins accelerating programmes.”

Exports, FTAs and supply chains

Rajesh Agrawal, Special Secretary, Ministry of Commerce and Industry, said, “India is now increasingly looking at integrating more with the world.”

He added, “We believe the next phase of growth, beyond a 4 trillion economy, will come through exporting to international markets and noting that India has signed FTAs with 27 countries.”

Sudhakar Dalela, Secretary (Economic Relations), Ministry of External Affairs, said, “the domestic market is robust but it is equally important for the auto industry to strengthen exports and diversify its supply chain, integrating into the global markets and value chains.”

SIAM President Shailesh Chandra, who is also MD of Tata Motors Passenger Vehicles and TPEM, pointed to ‘a record 5 million vehicles exported’ and called a recent UK FTA ‘a landmark,’ describing 20 percent export growth as ‘a powerful vote of confidence.’

OEM perspectives and next steps

Shenu Agarwal, Vice President, SIAM, and MD & CEO, Ashok Leyland, said commercial vehicles remain ‘pivotal for sustainable mobility,’ backing CNG and LNG in long-haul and ‘deep localisation of electric mobility.’

K. N. Radhakrishnan, Director & CEO, TVS Motor Company, highlighted ‘strong R&D momentum,’ progress on the circular economy and the need to ‘focus on developing local talent,’ adding, ‘The customer should remain at the centre of all decision making.’

Unsoo Kim, MD & CEO, Hyundai Motor India, said GST reforms have supported domestic manufacturing and rural demand and that AI will redefine mobility within enabling frameworks under Make in India.

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