Introduction
The Indian auto industry had a mixed Q1 (April–June 2025) with subdued retail sentiments despite stable macroeconomic indicators. While June 2025 saw steady volumes, the quarter reflected a slight decline across some categories due to inventory corrections and export logistics. Let's dive into the performance across segments.
Passenger Vehicles (PV)
- Q1 FY2025–26 sales: 10.11 lakh units (down 1.4% YoY)
- Utility Vehicles (UVs) now contribute 66% of PV sales — UV segment up by 3.8%
- Passenger Cars de-grew by 11.2%
- Highest-ever Q1 exports: 2.04 lakh units (up 13.2%)
- Strong demand in Middle East, Japan, Australia, Latin America, and neighbouring countries like Sri Lanka & Nepal
- June 2025 sales: 3,12,849 units
Two-Wheelers (2W)
- Q1 FY2025–26 sales: 46.74 lakh units (down 6.2% YoY)
- Retail registrations were up by 5% due to the marriage season and rural demand
- Scooters gained share by 2.15% over last year
- Exports: 11.4 lakh units (up 23.2%)
- June 2025 sales: 15,59,851 units
Three-Wheelers (3W)
- Q1 FY2025–26 sales: 1.65 lakh units (up 0.1%) — Highest ever for Q1
- Driven by passenger carriers and growth in urban low-load cargo transport
- Exports: 96,000 units (up 34.4%)
- June 2025 sales: 61,828 units
Commercial Vehicles (CV)
- Q1 FY2025–26 sales: 2.23 lakh units (down 0.6%)
- Passenger CVs posted growth, but Goods CVs slightly declined
- Exports: 20,000 units (up 23.4%)
Production Overview
- June 2025 production: 23,64,868 units (PV, 2W, 3W, Quadricycle)
- Q1 April–June 2025 total production: 76,60,225 units
Segment-Wise Quarterly Performance Table
| Segment | Q1 Sales (Units) | Growth YoY | Exports Q1 |
|---|---|---|---|
| Passenger Vehicles | 10,11,882 | -1.4% | 2,04,000 |
| Two-Wheelers | 46,74,562 | -6.2% | 11,40,000 |
| Three-Wheelers | 1,65,211 | +0.1% | 96,000 |
| Commercial Vehicles | 2,23,215 | -0.6% | 20,000 |
Growth Outlook – Q2 FY2025–26
- Festive season demand may uplift sales in PV and 2W segments
- Above-normal monsoon to benefit rural income and entry-level vehicles
- RBI’s 100 bps repo rate cut to boost loan affordability
- Supply chain challenges like China's rare earth export restrictions remain a concern
Industry Voices
Mr. Shailesh Chandra (President, SIAM): “Though performance was relatively flat, we expect retail activity to pick up in the coming quarter with support from festive season and rate cuts.”
Mr. Rajesh Menon (Director General, SIAM): “Passenger Vehicle sales dipped marginally in Q1, but exports and Three-Wheeler sales hit record highs. The industry must now navigate global supply challenges and domestic sentiment shifts.”
The Indian auto industry closed Q1 FY2025–26 on a cautiously optimistic note. While overall growth was limited, strong exports, healthy Three-Wheeler momentum, and positive macroeconomic signals provide a platform for a possible revival in Q2. Keep an eye on festive trends and rural sentiment — they’ll be key in driving demand forward.
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