Three-wheelers posted their highest-ever sales of 7.4 lakh units in FY25, clocking a growth of 6.7% as compared to previous year, surpassing the previous peak of FY19. The growth was primarily driven by the demand of passenger sub-segment and the rising demand for last-mile mobility solutions, in urban and semi-urban areas including e-vehicles led to this growth.

Commercial vehicles experienced a de-growth of 1.2% in FY25 compared to the previous year. “Though the overall trucks segment has witnessed a slight de-growth, but the requirement of freight movement has been suitably served with fleets migrating towards higher GVW (Gross Vehicle Weight) vehicles,” said SIAM.

In its outlook for the ongoing fiscal, FY26, SIAM said a normal monsoon, as currently forecasted for 2025, is expected to support broader economic activity, especially in rural and semi-urban regions, which would be a tailwind for the auto sector demand. “The sector will also benefit from the reforms in the personal income tax announced in the recent Union Budget of 2025-26, which has been followed by two back-to-back rate cuts by RBI. These measures would help in creating demand by increased accessibility of vehicle financing,” said Menon.

Export demand in key markets of interest, such as Africa and neighbouring countries, is likely to continue as ‘Made in India’ vehicles are gaining traction, said SIAM.

Commenting on the auto sales data, Shailesh Chandra, president of SIAM said, “The Indian automobile industry continued its steady performance in FY25, driven by healthy demand, infrastructure investments, supportive Government policies, and continued emphasis on sustainable mobility."

"Growth rates have been varied across segments. Passenger vehicles and three-wheelers witnessed a moderate growth on account of high base effect, but saw the highest ever sales in these categories, while the two-wheeler segment registered strong growth in FY25," said Chandra.

"On the exports front, good recovery is seen across all segments, particularly passenger vehicles and two-wheelers reflecting improved global demand and India's growing competitiveness. In FY2024-25, the Government of India introduced the PM E DRIVE scheme and PM e-Sewa schemes which underscores the firm commitment of the Government towards promoting sustainable mobility. Looking ahead, the backdrop of stable policy environment, along with recent measures such as reforms in personal income tax and RBI’s rate cuts, will help in supporting consumer confidence and demand across segments," said Chandra.

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