India’s automobile sector demonstrated steady growth in May 2025, with total production and domestic sales showing modest gains across key segments.

Overall vehicle production—including passenger, three‑wheelers, two‑wheelers, and quadricycles—reached 2.58 million units, marking a year‑on‑year rise of 5.2 per cent. Domestic sales across these categories totalled around 2.01 million units, up 1.8 per cent compared to May 2024.

Passenger Vehicles (PVs)

Passenger vehicle dispatches to dealers remained nearly flat at 344,656 units, reflecting a marginal decline of 0.8 per cent from the previous year. Within the segment, utility vehicles (UVs) drove the growth, with sales climbing 7.6 per cent to 196,821 units, offsetting a 12.2 per cent drop in traditional car sales (93,951 units). Van sales also improved by 12.5 per cent, reaching 12,327 units.

Two‑Wheelers

This segment saw a modest rise in domestic sales to 1.66 million units, a gain of 2.2 per cent. Scooter sales were particularly strong, increasing 7.1 per cent to 579,507 units, while motorcycle sales remained steady (1.04 million units) and moped sales declined 7.7 per cent to 37,264 units.

Three‑Wheelers and Quadricycles

Sales of three‑wheelers fell by 3.3 per cent to 53,942 units, while quadricycle sales remained negligible with only one vehicle sold during the month.

Exports and Outlook

Exports remained robust, with passenger vehicle exports rising by 24.4 per cent to 67,181 units, bolstered by UV shipments. UV exports surged by 32.3 per cent, while car exports increased by 17.7 per cent. For two‑wheelers, export growth stood at 21.7 per cent.

According to SIAM, positive macroeconomic factors—including recent repo rate cuts and projections of an above‑average monsoon—are expected to support consumer sentiment and fuel demand in the coming months.