India's car sales surge past 41.53 lakh mark during FY25

IANS April 7, 2025 206 views

India's automotive sector demonstrated remarkable resilience in financial year 2025 with car sales climbing to 41.53 lakh units. Rural markets emerged as the primary growth driver, registering an impressive 7.93% increase in vehicle registrations. Maruti Suzuki continued its market dominance, holding a commanding 40% market share amidst fierce competition. Despite potential challenges like heatwaves and trade tensions, the industry remains optimistic about future growth prospects.

"FY25 truly showcased how adaptable and resilient India's auto retail sector can be" - CS Vigneshwar, FADA President
India's car sales surge past 41.53 lakh mark during FY25
New Delhi, April 7: The number of new cars registered on the government’s VAHAN portal rose to a record 41,53,432 units during the financial year ended March 31, 2025, which represents a 4.87 per cent increase in sales over the previous financial year, according to figures compiled by the Federation of Automobile Dealers Associations (FADA).

Key Points

1

Maruti Suzuki maintains 40% market leadership

2

Rural areas drive significant automotive growth

3

Two-wheeler sales jump 7.71% year-on-year

4

Challenges include potential heatwaves and international trade tensions

The rural areas registered a higher growth rate of 7.93 per cent driven by higher farms incomes, following the better performance of the agricultural sector. The urban areas clocked a growth of 3.07 per cent.

Maruti Suzuki India continued to be the market leader with a dominant 40 per cent market share while arch rival Hyundai Motor India was locked in fierce competition for the second spot with home-grown Tata Motors and Mahindra & Mahindra Ltd. The two Indian carmakers also made inroads in the electric car segment, according to the data.

Two-wheeler sales during 2024-25 registered a higher growth rate at 7.71 per cent year-on-year to touch 1,88,77,812 units on the back of buoyant demand.

Three-wheelers sales rose 4.54 per cent compared to the previous on driven by higher economic activity but commercial vehicles remained flat during the year.

“FY25 truly showcased how adaptable and resilient India’s auto retail sector can be,” FADA President CS Vigneshwar said in a statement.

“Our initial forecast of low single-digit growth, around 5 per cent, for passenger vehicles ended up hitting the mark almost perfectly. A key highlight for the year was the performance in rural areas," he added.

According to FADA, auto dealers across the country have some apprehensions going ahead in FY26 as “IMD’s warning of intense heatwaves looms over consumer footfall and infrastructure activity, while renewed tariff tensions on the international stage add market volatility and rattle buyer sentiment.”

However, despite these headwinds, nearly half of surveyed dealers still expect April sales to be flat and over a third foresee some growth—driven by regional festivals and the marriage season, the FADA statement added.

Reader Comments

R
Rahul K.
Great to see the auto sector doing well! Especially happy about rural growth - shows our farmers are prospering too. Maruti maintaining 40% share is impressive but I hope Tata and Mahindra keep pushing them with their EVs. 🚗⚡
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Priya M.
While the numbers look good, I wonder how much of this is just replacement demand vs actual new buyers. Also concerned about the environmental impact - wish the article mentioned more about EV adoption rates specifically.
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Sanjay T.
Bought my first car last month - a Tata EV! Contributing to those numbers 😊 The waiting period was 3 months though, shows how demand is outpacing supply in some segments.
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Ananya R.
Two-wheeler growth at 7.7% is actually more impressive than cars when you think about it. Shows how middle class mobility is expanding. Hope manufacturers focus on safety features though - too many accidents these days.
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Vikram J.
The heatwave warning is concerning. Last summer, my car AC gave up and service centers were overloaded. Manufacturers should prepare better for extreme weather conditions - it's only going to get worse.
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Neha P.
As a small town dealer, I can confirm rural demand is real! First-time buyers who previously used bikes are now opting for compact cars. The financing options have really helped boost sales in our area.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Indian Automotive Sales FADA Maruti Suzuki Rural Market Growth Vehicle Registration FY25 Auto Sector
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