{"id":168811,"date":"2025-04-02T19:47:05","date_gmt":"2025-04-02T19:47:05","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/marketing\/passenger-vehicle-sales-hit-record-in-fy25-despite-demand-slowdown-et-brandequity\/"},"modified":"2025-04-02T19:47:05","modified_gmt":"2025-04-02T19:47:05","slug":"passenger-vehicle-sales-hit-record-in-fy25-despite-demand-slowdown-et-brandequity","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=168811","title":{"rendered":"Passenger vehicle sales hit record in FY25 despite demand slowdown, ET BrandEquity"},"content":{"rendered":"


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Domestic passenger vehicle wholesales are estimated to have grown in low single-digits in FY25, halving from the year before due to a high base and deferment of purchases by potential consumers amid economic uncertainties and inflationary concerns.<\/p>\n

Sport-utility vehicles-which comprised nearly 55 per cent of total sales during the year-scored a fresh sales record for the third year in a row. Carmakers<\/a> report wholesale dispatches from factories to dealerships every month and retail sales to consumers. These are collated and reported by industry body Society of Indian Automobile Manufacturers (SIAM<\/a>) in the first fortnight of every month.<\/p>\n

Initial estimates by industry stakeholders showed an all-time high of 4.34 million vehicles were sold locally in the just-ended fiscal year, growing about 3 per cent from 4.22 million units in FY24. Exports too scaled a new peak of 755,000-765,000 units during the year.<\/p>\n

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Sales of electric vehicles<\/a>, though, remained lower than expected, closing the year with a modest 2.7-2.8 per cent share in the total passenger vehicle market, up from a little over 2 per cent at the start of FY25. Industry executives said the pace of EV adoption will hinge on how rapidly charging infrastructure is developed across the country.<\/p>\n

Market leader Maruti Suzuki<\/a> saw volumes fall by about 1 per cent to 150,743 units in March. Annual volumes inched up to 1,760,767 units, from 1,759,881 units in FY24. Partho Banerjee, senior executive officer (marketing and sales) at Maruti Suzuki<\/a>, said, “While urban markets remained largely flat, rural centres performed better. Sales in rural markets rose by about 10 per cent last fiscal.”<\/p>\n

Given the high base and challenging macro-economic environment, industry stakeholders are expecting car sales to grow by 1-2 per cent this fiscal year, said Banerjee.<\/p>\n

Hemal Thakkar, senior practice leader and director, Crisil Intelligence expects car sales growth to slow further this fiscal due to the global trade war related uncertainty, stock market volatility, and high retail inventory. “As per our channel checks, dealerships hold close to 50 days of stock,” said Thakkar.<\/p>\n

In March, industry car sales are estimated to have grown by 3-6 per cent to 380,000-390,000 units.<\/p>\n

Domestic sales at Hyundai Motor India<\/a> declined 2.2 per cent year-on-year (y-o-y) in March to 51,820 cars. The company’s midsized SUV Creta though topped the charts selling last month, the company said, adding annual sales of the model too grew by almost a fifth to 194,871 units. The Korean automaker’s FY25 sales fell 2.5 per cent to 598,666 units from 614,721 units. <\/p>\n

“Solidifying our position further in India, HMIL continued its reign as the second largest passenger vehicle maker in FY 24-25,” said Tarun Garg, the company’s chief operating officer.<\/p>\n

Local sales at Tata Motors-the country’s third-largest passenger vehicle maker-increased 3 per cent to 51,616 vehicles in March over the year ago period. For the full year ended 31 March, sales dropped 3 per cent to 553,585 vehicles. <\/p>\n

Mahindra & Mahindra (M&M) continued to outpace the market, with sales growing by 18 per cent to 48,048 vehicles last month. Total sales at the maker of XUV700 and Scorpio SUVs rose by a fifth to an all-time high of 551,487 vehicles last fiscal. Kia India sold 25,525 vehicles in March, up 19 per cent from a year earlier. Sales in FY25 grew 4 per cent to 255,207 vehicles.<\/p>\n

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