Throughout May 2025, the Indian automotive industry continued its lively path, displaying a mix of major segment growth and reorganization. Exports remained a highlight, while some groups saw a decline in local sales for the month and others continued to expand. These trends establish the tone for the current fiscal year's cumulative numbers and are based on the previous fiscal year's foundational performance.

Rajesh Menon, Director General of SIAM, stated that "All vehicle segments posted stable performance in May 2025" in his remarks about the May 2025 performance. Despite a slight decline of 0.8% compared to May 2024, he emphasized that the Passenger Vehicles segment sold 3.45 lakh units, making it the second-best month for sales in history. The Two-Wheeler segment, on the other hand, experienced a 2.2% increase in sales in May 2025, reaching 16.56 lakh units.

Passenger Cars

Domestic sales of passenger vehicles in May 2025 totaled 344,656 units, representing a little drop of 0.8% from the 347,492 units sold in May 2024. Passenger Cars experienced a decrease in domestic sales, with 93,951 units sold in May 2025 compared to 106,952 units sold in May 2024, representing a 12.2% decline.

Utility Vehicles, which significantly boosted growth last fiscal year, also saw a strong domestic sales performance in May, with sales increasing from 182,883 units in May 2024 to 196,821 units—an increase of 7.6 percent. In May 2025, Vans' domestic sales increased by 12.5% to 12,327 units.

Domestic passenger vehicle sales for the cumulative total of April and May 2025–26 increased by 3.1% to 606,747 units from 588,541 units in the same period of 2024–25. Utility Vehicles significantly added to the overall total, with domestic sales increasing by 9.8% (397,883 units in April-May 2025-26 compared to 362,212 units in April-May 2024-25).

However, cumulative domestic sales of passenger cars fell 9% from 203,309 units to 185,099 units. Vans experienced a 3.2% rise in cumulative domestic sales.

Passenger automobiles were prominent on the export front. Exports increased by 24.4% in May 2025, reaching 67,181 units, up from 53,991 units in May 2024. Utility vehicle exports led the way with a 32.3% increase (32,411 units compared to 24,490 units), while passenger car exports grew by 17.7% (33,902 units versus 28,802 units).

With 1,26,576 units exported in April-May 2025-26, Passenger Vehicles experienced a 22.2% increase on a cumulative basis over the previous year's 1,03,554 units. The primary contribution came from Utility Vehicle exports, which increased by 46% (from 43,512 units to 63,526 units).

Two Wheelers

The Two-Wheeler segment showed domestic sales of 16,55,927 units in May 2025 compared to 16,20,084 units in May 2024, representing a 2.2% increase. Scooters drove the increase this month, with domestic sales jumping 7.1% to 579,507 units from 540,866. Motorcycles saw a little 0.0% shift in domestic sales, with steady sales of 1,039,156 units. Mopeds showed a 7.7 percent decrease in domestic sales, with 37,264 units sold compared to 40,394 units.

Compared to 33,71,477 units in April-May 2024-25, cumulative domestic sales of two-wheelers for April-May 2025-26 fell by 7.6% to 31,14,711 units, despite growth being recorded against the previous month in May. Scooters had a little cumulative domestic sales increase of 0.5%. During the cumulative period, motorcycles experienced an 11.8% decrease, and mopeds experienced a 7.7% decline.

Overall, two-wheeler exports maintained their strong performance. Exports switched to positive growth of 21.7% in May 2025, rising from 313,131 units in May 2024 to 380,979 units. The catalyst was motorcycles, which increased by 27.1 percent in May 2025, from 262,023 units to 333,149 units. Cumulatively, two-wheeler exports for April-May 2025-26 surpassed the previous year, rising 18.1 percent from 634,181 units to 749,180 units in the same comparative time period. This ongoing cumulative growth was primarily fueled by the motorcycle industry, which grew by 25 percent.

General perspective

In May 2025, a total of 2,582,207 Passenger Vehicles, Three Wheelers, Two Wheelers, and Quadricycles were produced. The Indian auto sector presents a hopeful outlook for the upcoming months, potentially enhancing affordability and consumer sentiment, due to its robust export performance and favorable signs like recent RBI repo rate cuts and an above-normal monsoon forecast, even if certain areas saw short-term variations in domestic sales.

In the coming months, Menon said that the RBI's recent repo rate reductions and a prediction of above-normal monsoons are good signs that will improve affordability and lift consumer mood.

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