Dealer Sales Up 2%, Steady Demand for Large SUVs Offsets Weak Sales of Sedans and Small Cars
- Dealer sales of Indian carmakers rose 2% in the financial year 2025.
- Steady demand for large sport utility vehicles (SUVs) offset weak sales of small cars and sedans, industry data shows.
- According to SIAM, carmakers sold a record 4.3 million units in the world’s third-largest car market.
- However, growth was the lowest in at least four years.
Background:
- Car sales grew 12% in FY 2022 and 27% in FY 2023.
- Growth moderated to 8% in 2024 and just 2% in 2025.
- India’s financial year runs from April to March.
Future Outlook:
- Manufacturers estimated in February that the industry would grow 1%–2% in the current financial year.
- Analysts have called these forecasts conservative.
Car manufacturers have been offering higher discounts for longer periods to sustain sales, as the pent-up demand that drove growth in previous years has started to wane.
According to SIAM, domestic demand is expected to get a boost from successive rate cuts by India’s central bank, as well as the personal income tax reductions announced earlier this year.