Society of Indian Automobile Manufacturers (SIAM) released the motor vehicle data for February 2025, highlighting an intricate mix of growth and decline across various segments of the Indian automotive sector. The data points towards strength in segments aligning with contemporary consumer trends, while traditional models and segments show noticeable stress.
PV Shows Modest Growth
Overall passenger vehicle (PV) sales, including Tata Motors, rose modestly by 1.9%, from 3,70,786 units in February 2024 to 3,77,689 units in February 2025. However, excluding Tata Motors, passenger vehicle sales registered a 3.7% increase, reflecting totals of 3,19,519 units in February 2024 and 3,31,254 units in February 2025.
Breaking down the Passenger Car segment reveals a downturn, with domestic sales declining by 4.3%, dropping from 1,15,937 units in February 2024 to 1,10,966 units in February 2025. Maruti Suzuki India Ltd maintained its dominant position but experienced a slight decrease in domestic sales, falling from 86,890 units to 84,265 units. In contrast, Utility Vehicles (UV) exhibited growth of 9.1%, with domestic sales climbing from 1,91,435 to 2,08,795 units. Maruti Suzuki’s models like Brezza, Fronx, and Jimny were key contributors to this surge, highlighting an increasing consumer preference for SUVs and crossovers.
Shifts In Consumer Preferences
Within passenger cars, the Mini segment witnessed a notable dip. Maruti Suzuki's Alto and Spresso saw a significant reduction, dropping from 14,782 units to 10,226 units. Renault Kwid also showed declining popularity, reducing from 828 units to just 433 units year-on-year.
However, the Utility Vehicle segment, particularly smaller SUVs priced under Rs. 20 lakh, flourished. Notably, Maruti Suzuki's compact SUVs such as Brezza and Fronx demonstrated impressive growth, their combined domestic sales leaping from 30,255 units to 37,238 units. Mahindra & Mahindra and Kia India further fuelled the UV segment’s upward trajectory, with sales figures showing robust performance and consumer interest.
Vans saw a mild downturn, slipping 5.4%, indicating a subtle shift in consumer preference away from traditional people carriers like Maruti Suzuki’s Eeco.
3W Segment On Steady Rise, E-Rickshaw Market Struggles
Three-wheeler sales continued a positive trend, registering a 4.7% increase to 57,788 units in February 2025 from 55,175 units a year ago. The Passenger Carrier sub-segment drove this growth, increasing by 6.8%. Bajaj Auto Ltd significantly influenced these numbers, maintaining consistent performance.
However, the E-Rickshaw segment contracted, down by 41.2% cumulatively from April 2024 to February 2025, highlighting issues possibly related to operational viability, policy adjustments, or consumer scepticism towards electric three-wheelers.
2W Struggle, Scooters Relatively Stable
The two-wheeler segment faced challenges, recording a 9% drop in overall sales. Motorcycles specifically took a substantial hit, with sales declining sharply by 13.1%, from 9,64,362 to 8,38,250 units. This reduction signifies underlying economic or consumer confidence issues, potentially impacted by rising costs or evolving consumer preferences towards alternative modes of transport.
In contrast, scooter sales remained relatively stable, slightly decreasing by 0.5%, demonstrating resilience in urban mobility choices.
Quadricycle & Exports - Contrasts
Quadricycles recorded minimal domestic sales, with only 3 units sold, showing a dramatic 91.7% decrease year-on-year. Conversely, their exports surged by 76.5%, indicating a growing international demand for these niche vehicles.
The modest increase in total passenger vehicle sales masks underlying volatility. While Utility Vehicles continue their strong performance, the substantial decline in motorcycles and the sharp contraction in the E-Rickshaw segment warrant close monitoring. Consumer preferences are shifting towards larger, more feature-rich vehicles, reflecting evolving market dynamics amid broader economic uncertainties.
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