PV Sales Set To End FY25 Flat, 3.82 Million Units Sold In Wholesale Till February

According to the Society of Indian Automobile Manufacturers (SIAM), February PV wholesales reached a record high for the month at 377,689 units

Automobile original equipment manufacturers (OEMs) are forecasting even slower growth for FY26

Source : PTI

Passenger vehicle (PV) sales are projected to end the financial year (FY25) flat, with 3.82 million units sold in wholesale by February. In FY24, PV volumes hit a record high of 4.2 million units. Between April 2024 and February 2025, PV wholesales grew by 2.12 per cent, with 3.82 million units sold year-to-date (YTD) in FY25, compared to 3.74 million units in the same period last year.

According to the Society of Indian Automobile Manufacturers (SIAM), February PV wholesales reached a record high for the month at 377,689 units. With March sales expected to be similar, total PV sales for FY25 are likely to remain close to 4.2 million units, reflecting flat growth.

Analysts predict a sluggish performance for the fiscal year. ICRA has estimated industry growth in FY25 to be between 0-2 per cent. "Most of the demand drivers for the industry—disposable incomes, new model launches, cost of ownership—remain neutral or favourable. Accordingly, even as the base for the industry continues to remain high, ICRA estimates the PV industry volumes to grow at a moderate pace of 4-7 per cent in FY26," said the ratings agency.

However, automobile original equipment manufacturers (OEMs) are forecasting even slower growth for FY26.

Major Indian carmakers are anticipating only 1-2 per cent growth in domestic passenger vehicle (PV) sales for 2025-26, citing weak demand, a stagnant base of first-time buyers, declining sales of entry-level cars, the fading post-pandemic surge, inflation, rupee depreciation, and geopolitical uncertainties.

During a recent internal meeting, members of the Society of Indian Automobile Manufacturers (SIAM) reached a consensus that PV sales would grow by a mere 0.07 per cent in FY25 and only experience modest growth of 1-2 per cent in FY26.

PV Price Surge

In recent years, PV prices have surged by nearly 70 per cent, largely due to regulatory changes, including new emission norms. However, customer income levels have remained largely stagnant. As affordability has decreased, entry-level cars have been hit hardest, while growth in the PV segment has primarily been driven by utility vehicles (UVs).

A senior executive from a leading PV OEM noted that, despite these challenges, the Indian market still holds potential, with vehicle penetration standing at just 34 vehicles per 1,000 people, according to a Business Standard report.

At a recent SIAM meeting, Partha Banerjee, head of marketing and sales at Maruti Suzuki India, pointed out a decline in first-time car buyers, which dropped from 47 per cent in 2018-19 to 40 per cent now.

OEMs like Hyundai have observed changing consumer preferences, with rising aspirations and a growing preference for SUVs. Among Hyundai’s first-time buyers, 45 per cent now prefer SUVs, while hatchback customers are increasingly leaning toward premium models.