Passenger vehicle sales in India grew 1.9% year-on-year (YoY) to 3,77,689 units in February 2025, marking the highest-ever sales for February in terms of wholesale dispatches to dealerships, according to the Society of Indian Automobile Manufacturers (SIAM). In contrast, two-wheeler sales dropped 9% YoY to 13,84,605 units, reflecting continued weakness in the segment.
Passenger and Two-Wheeler Sales Performance
The total passenger vehicle wholesale sales stood at 3,70,786 units in February 2024, showing steady growth in demand. However, the sharp decline in two-wheeler sales, from 15,20,761 units in February 2024, indicates slowing demand among middle and lower-income consumers.
Three-wheeler sales showed positive momentum, increasing 4.7% YoY to 57,788 units, driven by growth in passenger carriers (6.8%) and goods carriers (5.9%). However, electric rickshaw and electric cart sales plummeted 50.9% and 30.6%, respectively, signaling challenges in mass-market electric vehicle adoption.
Industry Trends and Market Conditions
The passenger vehicle segment remains resilient, despite concerns over rising inflation and inventory pressure in the market. SIAM Director General Rajesh Menon noted that upcoming festivals like Holi and Ugadi in March could boost demand, helping FY25 close on a positive note.
However, retail sales data from FADA (Federation of Automobile Dealers Associations) paints a contrasting picture, showing a decline in actual vehicle registrations, raising concerns that wholesale sales may not reflect real consumer demand.
Inventory Pressure and Economic Challenges
Industry insiders indicate that dealers are struggling with rising inventory levels, especially in the two-wheeler and passenger vehicle segments. Manufacturers are reportedly pushing higher wholesale numbers to meet year-end targets, despite slower retail demand.
Motorcycle sales dropped 13.1% YoY, while scooters declined just 0.5%, showing relative stability. Mopeds continued their decline, falling 18.2%, as demand shifts away from this segment.
While new model launches and personal mobility demand post-pandemic have supported passenger vehicle sales, sluggish two-wheeler performance signals economic stress among lower-income consumers.
The SIAM data excludes sales figures from luxury carmakers BMW, Mercedes-Benz, Jaguar Land Rover, and Volvo Auto.
Disclaimer
The information provided is for informational purposes only and should not be considered financial or investment advice. Automobile sales figures are based on industry data and market trends. Always conduct your own research or consult an expert before making investment decisions.
