Indian automobile industry records record sales in February, strong growth in passenger vehicle segment, but decline in two-wheeler sales
The Indian automobile industry set a new milestone in February 2025. According to data released by the Society of Indian Automobile Manufacturers (SIAM) on Thursday, passenger vehicle sales reached record levels in February this year, with cars and SUVs contributing significantly. The three-wheeler segment also witnessed strong growth during this period. However, two-wheeler sales declined, which is a worrying sign for the industry.
Bumper sales in the passenger vehicle segment
Total passenger vehicle sales in the Indian market reached 3,77,689 units in February 2025, up 1.9 per cent from 3,70,786 units sold in February 2024. This has been the biggest ever sale for the month of February. This figure does not include sales of luxury car manufacturers like BMW, Mercedes-Benz, Jaguar Land Rover and Volvo Auto. SIAM Director General Rajesh Menon said that in February 2025, passenger vehicle sales set a new record, with the highest ever 3.78 lakh units sold in this segment.
This spectacular growth in the passenger vehicle segment reflects the growing purchasing power of the Indian market and the changing trends of consumers. Especially the growing demand in the car and SUV segment has empowered this sector.
Strength in three-wheelers
In February 2025, three-wheeler sales registered a year-on-year growth of 4.7 percent. A total of 57,788 units of three-wheelers were sold this month, while 55,175 units were sold in the same period last year. This growth is due to the ever-increasing demand for three-wheelers in the Indian market and its diverse utility, especially their increased use for passenger and freight transport.
Decline in the two-wheeler segment
However, a matter of concern for the Indian automobile industry is the decline in two-wheeler sales. Two-wheeler sales declined by 9 per cent to 13,84,605 units in February. The motorcycle segment witnessed a decline of 13.1 per cent and scooter sales declined by 0.5 per cent. Moped sales also declined by 18.2 per cent.
This decline may be due to various reasons, such as reduced demand for two-wheelers in rural areas, rising fuel prices and changing consumer preferences. Apart from this, transport activities may also have declined in some areas due to winter and snowfall, which impacts two-wheeler sales.
Overall, the performance of the Indian automobile industry
Passenger vehicle sales in the first 11 months of 2023-24 reached 6,92,311 units, up 13.6 per cent from 6,09,505 units sold in the same period of 2022-23. However, despite the decline in sales in the two-wheeler segment, the overall automobile industry performance remains strong due to growth in three-wheelers and passenger vehicles.
It is clear from this data that the wave of change continues in the Indian automobile industry and some new trends and consumer preferences in the market will require precise strategies. It will be important to keep an eye on the direction and pace of growth of this sector in the coming months, especially as a decline in two-wheeler sales may pose potential challenges for the industry.
