India's auto industry shows mixed performance with passenger vehicles reaching historic April sales figures despite sharp declines in motorcycle segment
15 May 2025 | 2932 Views | By Angitha Suresh
The Indian passenger vehicle market recorded its highest-ever April sales with 348,847 units sold in April 2025, marking a 3.9% growth compared to the same month last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Thursday. However, this represents an 8.5% decrease from the ...
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The Indian passenger vehicle market recorded its highest-ever April sales with 348,847 units sold in April 2025, marking a 3.9% growth compared to the same month last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Thursday. However, this represents an 8.5% decrease from the 381,358 units sold in March 2025.
The two-wheeler segment witnessed a significant decline of 16.7% year-on-year, with sales dropping to 1,458,784 units compared to 1,751,393 units in April 2024. Month-on-month performance showed a 12% drop from March's 1,656,939 units. Motorcycles were hit particularly hard with a 22.7% year-on-year decrease, while scooters fared slightly better with a 5.7% reduction. Industry sources attribute the steep drop in motorcycle sales primarily to Hero Motors' "inventory adjustment" efforts to align production with market demand.
"The two-wheeler segment decline is due to the high base effect of April last year, while it is likely to pick up in coming months," said Mr. Rajesh Menon, Director General of SIAM, in the organization's monthly report.
Three-wheeler sales remained relatively stable year-on-year with a marginal decrease of 0.7%, totaling 49,441 units. However, compared to March 2025, the segment experienced a substantial 21.3% decline from 62,813 units. Within this category, passenger carriers grew by 2% year-on-year, while goods carriers fell by 7.7%. Electric rickshaws saw a sharp 36.5% year-on-year decline, though e-carts bucked the trend with a 16.6% increase.
The total production across all segments in April 2025 reached 2,318,882 units, showing a 6.4% decrease from March's production of 2,476,915 units. The month-on-month decline aligns with typical industry patterns where March sees higher volumes as manufacturers push to meet financial year targets.
April 2025 marked a significant milestone for India's automotive industry as manufacturers successfully transitioned to the second stage of On-Board Diagnostics (OBD) 2 regulation for two and three-wheelers. This technology enhances vehicle emission monitoring capabilities, helping reduce pollution levels.
Additionally, the industry began rolling out E-20 compliant gasoline vehicles across the country in April. E-20 fuel contains 20% ethanol blended with gasoline, supporting India's goal of reducing dependence on imported fossil fuels while lowering carbon emissions.
SIAM, which represents major vehicle and engine manufacturers in India, has been tracking the industry's performance through the challenging transition to stricter emission norms and alternative fuel adoption. The data excludes figures from luxury carmakers including BMW, Mercedes, JLR, and Volvo Auto, while Tata Motors' domestic sales are included only in total passenger vehicle figures.
Analysts suggest that while passenger vehicle sales remain robust due to strong urban demand and new model launches despite the seasonal decline from March, the two-wheeler segment's more pronounced drop reflects ongoing economic pressures in rural markets and the lingering effects of pandemic-related financial constraints on middle and lower-income consumers.