Passenger vehicles sales remain muted in May, two wheelers up 2.2% YoY
Indian auto sales experienced a marginal increase of 1.5% in May, driven primarily by a 2% rise in two-wheeler sales. Passenger vehicle dispatches saw a slight decline of 0.8% due to tepid consumer sentiment, though utility vehicles showed growth....
Mumbai: Passenger vehicle sales fell 0.8% from a year earlier in May as stock market volatility and concerns due to escalated geopolitical tensions between India and Pakistan led potential buyers to defer purchases.
Total sales declined to 344,656 vehicles during the month from 347,492 vehicles a year earlier, showed data issued Monday by the Society of Indian Automobile Manufacturers (SIAM). The industry body publishes data for wholesales or factory dispatches to dealerships and not retail sales.
Overall passenger vehicle sales would have fallen sharply if not for the 7.6% growth seen in utility vehicles (UV) to 196,821 units. Car sales dropped 12% to 106,952 units due to weak demand for entry-level and compact models. Vans however recorded a 12.5% increase, reaching 12,327 units.
Rajesh Menon, director general at SIAM said going forward, the Reserve Bank of India’s three repo rate cuts totalling 100 basis points in less than six months, along with forecast of above-normal monsoons should positively impact the auto sector by improving affordability and boosting consumer sentiment in the coming months.
In the two-wheeler segment, while overall sales edged up 2.2% to 1,655,927 units, scooter sales rose 7.1% to 579,507 units but motorcycles remained flat at 1,039,156 units. Electric two-wheelers saw steady gains led by TVS, Bajaj, and Ather. “Rural demand challenges persist, but urban premium and electric segments show promise,” Menon said.
Three-wheeler sales during the month dipped 3.3% to 53,942 units over the year-ago period.
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Total automotive sales across segments increased 1.5% in May. With the exception of scooters and motorcycles, factory dispatches across most segments remained either muted or declined over the same period last year as manufacturers curtailed shipments to dealers to align supplies to a persistent slowdown in demand. Overall sales during the period rose to 20,54,525 units from 20,23,403 units a year earlier.
Total vehicle production in May grew 5% to 2,582,207 units while exports climbed 23% to 479,538 units.
May 2025 Vs May 2024 (in units)
Total Passenger Vehicles-- 3,44,656 Vs 3,47,492 --- down 0.8% YoY
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Total Three Wheelers --53,942 Vs 55,763-- up 3.3% YoY
Total Two Wheelers-- 16,55,927 Vs 16,20,084, up 2.2% YoY
