SIAM: UV Sales Hit 2.8 Million in FY25, Driving 65% of India’s PV Market

India’s Passenger Vehicle (PV) market clocked its best-ever performance in FY 2024-25, with sales touching a new peak of 4.3 million units, according to the data shared by Society of Indian Automobile Manufacturers (SIAM). The auto industry body claimed that this growth was driven by strong demand for feature-rich models, better consumer offers, supportive policies, and government infrastructure initiatives.

This modest 2% growth in overall PV sales over the previous year was largely propelled by the continued dominance of Utility Vehicles (UVs). Sports or Multi-Utility Vehicles such as the Ertiga, Creta, Seltos, XUV 7OO, Thar, Innova, etc., accounted for nearly two-thirds of all PV sales during the previous fiscal, up from 60% in FY 2023-24.

SIAM data also showed that UV sales grew by 11%, rising from 2.52 million units in FY24 to nearly 2.8 million units in FY25. The increase in demand is attributed to the rollout of diverse UV models offering a blend of rugged design, advanced safety features, modern technology, and better fuel efficiency.

Also Read: Passenger Vehicle Sales Stood at 4.3 Million Units, Surged by 2% - SIAM | Republic World

“Consumer preference for larger vehicles offering versatility and road presence continues to grow, particularly in urban and semi-urban areas,” stated Shailesh Chandra, President of SIAM.

PV exports continue to boom

Exports also played a key role in FY25, with passenger vehicle exports surging by 15% to reach an all-time high of around 770,000 units, SIAM data showed. Indian-made global models have found strong demand in markets such as Latin America, Africa, and Southeast Asia.

“Exports have shown a good recovery across segments, particularly in passenger vehicles and two-wheelers, reflecting improved global demand and India's rising competitiveness,” added Chandra, who is also the Managing Director of Tata Motors Passenger Vehicles (TMPV) and Tata Passenger Electric Mobility (TPEM)

Two and three-wheelers up, CV down

In the two-wheeler segment, 19.6 million units were sold in FY25, marking a 9.1% increase. This segment's growth was driven by improved rural demand and rising consumer confidence, with electric vehicles (EVs) now making up 6% of total two-wheeler sales.

Meanwhile, commercial vehicle sales saw a 1% decline, with total wholesales dropping to 956,671 units, down from 968,770 units in FY24. Three-wheeler sales grew by 7%, reaching 741,420 units.

“While passenger vehicles and three-wheelers saw moderate growth due to a high base effect, they achieved their highest-ever sales. The two-wheeler segment showed strong growth, though commercial vehicles saw slight degrowth in FY25, though recent months have been better,” Chandra explained.

Overall, the automotive sector saw 7.3% growth, with total vehicle sales rising to 2,56,07,391 units in FY25, compared to 2,38,57,411 units in FY24. 

“The Indian automobile industry maintained steady growth in FY25, supported by strong demand, infrastructure investments, government policies, and a focus on sustainable mobility,” said Chandra.

In March 2025, passenger vehicle dispatches rose by 4% to 381,358 units, two-wheeler sales increased 11% to 1.66 million units, and three-wheeler dispatches grew 10% to 62,813 units compared to March 2024.

Business Outlook

SIAM remains optimistic for FY26, citing stable macroeconomic conditions as a key driver. The industry body expects continued growth, supported by stable economic conditions, favorable monsoons, income tax reforms, lower interest rates, and ongoing government investments in infrastructure. The growth of vehicle exports, particularly to markets in Africa and neighboring countries, will also play a role in maintaining momentum, according to SIAM. 

“Stable policy measures, along with recent reforms like income tax changes and RBI rate cuts, will help boost consumer confidence and demand,” stated Chandra. However, he added, “The automobile industry will continue to monitor macroeconomic conditions and global geopolitics, as these will shape demand and supply chain dynamics in the coming years.”