Why Are car Sales Rising Despite The Slump? car Numbers Decoded
The indian passenger automobile (PV) marketplace witnessed a modest 2.6 percent boom in sales, accomplishing 434,000 gadgets in the course of FY 2024-25, in comparison to 4,229,566 gadgets bought inside the corresponding period last year.
Industry gamers attribute the slowdown to vulnerable urban call, the lingering effect of a high base from the previous year, and lackluster income of hatchbacks and sedans.
Throughout march, PV wholesale figures stood at 385,000 gadgets, marking a 3.88 percent growth from 370,586 gadgets offered within the same month last year.
Maruti Suzuki sales flatten
For FY25, maruti Suzuki india (MSI) saw its sales stabilize at 22,34,266 gadgets compared to 21,35,323 devices in FY24. India's biggest passenger vehicle maker handed the annual total income milestone of 2 million gadgets for the second consecutive financial year. Its overall home income stood at 1,760,767 units in FY25, in comparison to 1,059,881 gadgets in the previous monetary year.
Rural Markets Outperform City Areas
Partho Banerjee, Senior Executive Officer (marketing and income) at maruti Suzuki, stated that at the same time as urban markets remained largely flat at some stage in the year, the company's rural markets performed better, with income growing approximately 10 percent closing monetary.
While asked about the lower growth costs inside the PV industry closing fiscal, he cited, "We entered FY25 on an excessive base, and the growth recorded in FY24 was largely because of pent-up demand post-pandemic."
Banerjee also highlighted that the 5-year compound annual increase rate (CAGR) for PVs hovered around four point six percent, aligning with initial projections by the Society of indian car Manufacturers (SIAM). FY24 had been a more potent year for the industry, witnessing an eight-point-nine percentage increase from 38,901,114 vehicles offered in FY23.
Hyundai, Tata Motors sales dip
Hyundai Motor india (HMIL),
Which regained the second position in volumes, mentioned a 2.6 percent decline in PV dispatches to 598,666 units. It recorded an overall income of 762,052 devices in FY24-25.
Further, Tata vehicles saw a three percent dip in home PV income, accomplishing 553,585 devices.
Commenting on the market situations, Shailesh Chandra, head of Tata Motors' PV and EV divisions, described FY25 as "a difficult 12 months marked by means of fluctuating demand." He additionally mentioned that demand growth shifting forward could be formed by using macroeconomic elements together with
But, Chandra mentioned, "Industry momentum is expected to be pushed by persisted innovation in line with evolving client preferences. SUVs, CNG, and EVs will remain key growth drivers, fueling the industry's enlargement."
Mahindra & toyota buck the trend.
Two automakers stood out amid the industry's slowdown—Mahindra & mahindra (M&M) and toyota Kirloskar Motor (TKM). TKM noticed a 27.9 percent surge in domestic sales, accomplishing 337,148 gadgets, at the same time as toyota posted a 19.9 percent upward thrust to 551,487 units.
"We additionally closed the year with the highest Vahan registrations with 20% growth (1st Apr 2024 to 31st march 2025), helping us to maintain our provider inventory degrees inside norms," M&M said in a statement.
Business outlook for FY26
Searching in advance, enterprise gamers such as maruti Suzuki, etc. expect a muted boom in FY26 as well. "SIAM forecasts just a 1-2 percent increase for FY26. We can not count on the 15-20 percent post-COVID surge to hold indefinitely," Banerjee remarked, emphasizing the unavoidable effect of the base impact.
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