Indian auto industry starts FY26 on mixed note: Domestic sales dip, exports see sharp rise
Notify me
The Indian automobile sector started FY 2025–26 positively, with variations in the trends in total vehicle sales. According to new data released by the Society of Indian Automobile Manufacturers (SIAM), total domestic sales in April 2025 were down by 13.3 per cent compared to last year, while total exports were up 15.6 per cent from last year, owing to higher global demand for utility vehicles and motorcycles.
Rajesh Menon, Director General, SIAM stated that the passenger vehicles segment posted its highest ever sales of April in 2025 of 3.49 Lakh units, with a growth in total production of 3.9 per cent as compared to April 2024. Three-Wheelers de-grew marginally by 0.7 per cent compared to April of previous year, with sales of 0.49 Lakh units. The Two-Wheeler segment de-grew by 16.7 per cent in April 2025, as compared to April 2024, with sales of 14.59 Lakh units, due to the high base effect of April last year, while it is likely to pick up in coming months.
Also Read : Indian auto sector grows with record PV sales in FY25 while EVs surged by 17% Passenger Vehicles: Growth powered by utility vehicles
The passenger vehicle (PV) market achieved a domestic sales growth of 5.5 per cent for April 2025, up from 2,87,746 units in April 2024 to 3,03,648 units. Interestingly, this is the only segment in April 202 5 to post a positive growth. The growth came spearheaded by Utility Vehicles (UVs), which achieved a robust 12.1 per cent year-on-year growth, selling 2,01,062 units in the domestic market.
However, the other PV sub-segments came under strain. Passenger car sales declined 5.4 per cent to 91,148 units, with van sales declining by 5.2 per cent to 11,438 units.
In the exports market, PVs recorded a healthy 19.8 per cent growth to 59,395 units. UVs once more took the lead, with a 63.6 per cent hike in exports, reflecting growing overseas demand for India-produced SUVs from markets in Africa, Latin America, and developing regions of Asia. Two-Wheelers: Domestic decline, exports soar
The two-wheeler segment in the domestic market encountered hurdles in April 2025, when total sales decreased 16.7 per cent from 17,51,393 units in April 2024 to 14,58,784 units in April 2025. The category experienced a major hit in motorcycles, which dropped by 22.7 per cent and scooters which declined by 5.7 per cent, and moped which decreased by 7.6 per cent.
Also Read : Indian auto buyers shift gears as quality, direct purchases and innovation lead the way: Deloitte
Despite the domestic dip, exports of two-wheelers surged by 14.7 per cent , with 3,68,201 units shipped compared to 3,21,050 units a year ago. Motorcycles drove export volumes, increasing 22.9 per cent, followed by mopeds with a record 204.2 per cent increase, albeit on a low base.
April 2025 data captures a market in transformation with changing economic forces. As domestic demand remains inflation, fuel price, and rural sentiment-sensitive, exports keep gaining from competitive pricing and international diversification initiatives by Indian producers.
Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.
First Published Date: 15 May 2025, 11:40 AM IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
4 minutes ago
- The Hindu
Central projects will create a ‘developed Tamil Nadu', says Narendra Modi
The Union government-funded infrastructure projects being implemented in Tamil Nadu on an outlay of over ₹3 lakh crore will help the Centre realise its dream of achieving 'Viksit Tamil Nadu', Prime Minister Narendra Modi said on Saturday. Inaugurating the new terminal building at the Thoothukudi airport, he said his government, which had promised a 'Viksit Bharat' (Developed India), was according the highest priority for infrastructure development. Hence, the port, rail and energy sectors were getting an unprecedented facelift nationwide, from Jammu and Kashmir to Tamil Nadu. Mr. Modi said the Centre had released over ₹3 lakh crore since 2014 for strengthening Tamil Nadu's infrastructure to make it 'Developed Tamil Nadu'. This was three times higher than the funding provided by the previous United Progressive Alliance government to the State. He further said the north cargo berth at VOC Port, Thoothukudi; six-lane VOC Port Road; and four-lane Sethiyathope-Chozhapuram Highway would significantly catalyse the trade opportunities and employment generation for the locals. In an apparent reply to Chief Minister M.K. Stalin's recent assertion that the Centre was refusing to allocate funds for Tamil Nadu, he said the thrust being given for infrastructure development in Tamil Nadu by the Centre in energy, road, rail, and port sectors would phenomenally expedite the State's growth while achieving the Centre's goal of 'Viksit Tamil Nadu'. He recalled that the National Democratic Alliance government had sanctioned 11 new medical colleges for Tamil Nadu, and the Centre was also developing harbours to improve their livelihood. Terming India's recent free trade agreement with the United Kingdom (U.K.) as 'historic', Mr. Modi said this agreement would open unprecedented export opportunities for Indian products. 'As more than 99% of the 'Make in India' products will be available in the U.K. at lower prices, the rise in demand will increase production in India and generate more employment in the micro and small industries here. It will enhance the world's faith in India, which will become the third largest economy in the world soon,' Mr. Modi said. He added that home-grown weapon systems, which were used in recent 'Operation Sindhoor', had destroyed the terrorists' hideouts and had given sleepless nights to the sponsors of terror. Governor R.N. Ravi, Union Minister of Civil Aviation Ram Mohan Naidu Kinjarapu, Union Minister of State for Information and Broadcasting L. Murugan, Tamil Nadu Ministers T.R.B. Rajaa, P. Geetha Jeevan, and Anita R. Radhakrishnan and MP Kanimozhi were among those present. State Finance Minister Thangam Thennerasu presented a memento to Mr. Modi on the occasion.
Time of India
an hour ago
- Time of India
New-Age lending model helping banks to cut costs and meet customer expectations
Across global financial markets, lending is experiencing a major shift. Borrowers now expect immediacy, personalization, and simplicity in every interaction—whether applying for a personal loan on their mobile device or financing a home, vehicle, or business. However, many banks and financial institutions are hindered by systems designed for a slower, less connected world. A World Bank report estimates that micro, small, and medium enterprises face an annual credit gap of USD 5.2 trillion—about 1.5 times the current lending volume for these businesses. With conversations from banks and lenders, it's clear: Legacy Loan Origination Systems are no longer adequate. They were built to standardize, not to innovate. They offer control—but make it hard to adopt changes. Today, with tech-savvy customers and constantly changing rules, this lack of flexibility has become a drawback. According to a market research, digital lending platforms in India are projected to reach over 500 million customers by the end of 2025, with the lending segment expected to hit USD 1.3 trillion in disbursements, driven by advancements in financial technology and increased smartphone penetration. Hence, what is needed is not just digital enhancement, but a fundamental reinvention of how lending is delivered, scaled, and evolved. This is where the model of Lending-as-a-Service is proving to be a game-changer. Lending-as-a-Service redefines lending not as a static software platform, but as a flexible, cloud-powered ecosystem. It enables lenders to break down the lending process into modular services that can be rapidly configured, deployed, and scaled across various product lines—from personal and auto loans to corporate, housing, and consumer durable finance. By adopting this model, financial institutions are no longer bound by one-size-fits-all workflows or long development cycles. They gain the agility to experiment, personalize, and adapt without overhauling their core architecture. But technology alone is not the differentiator—it's the outcomes that matter. Institutions supported with platforms with Lending-as-a-Service architecture have consistently accelerated their go-to-market timelines, dramatically improved customer satisfaction, and reduced operational costs. We've seen banks launch new retail lending products in a matter of days. We've seen journeys that once required manual underwriting transformed into straight-through processes powered by AI. In several deployments, the cost per loan has reduced by over half, while conversion rates have increased multifold. For instance, a leading financial services provider in India leveraged our platform to launch a digitally native loan journey for Indian customers, covering onboarding, KYC, credit scoring, and disbursal—all within a few days. Another bank in Southeast Asia reimagined its auto finance journey by integrating real-time approvals, e-KYC, and government API linkages into a seamless customer flow. These institutions weren't just digitizing—they were building lending businesses designed for today's customers and tomorrow's challenges. This transformation is also enabling compliance readiness at scale. In regulated markets such as the UAE, India, and Southeast Asia, stakeholders are able to quickly embed policy changes, update product terms, or roll out pre-approved offers—without recoding, retraining, or retesting legacy systems. Thus, the future of lending will belong to those who are agile, responsive, and deeply aligned with the needs of their borrowers. Lending-as-a-Service offers a pathway to that future—a model that is not only more adaptive but also more resilient in the face of change. At the core of this shift is a new generation of lending platforms — modern, unified lending infrastructure built for speed, scalability, and intelligence. To illustrate, our platform, built on a microservices-based, cloud-native foundation, enables institutions to launch and iterate with confidence. With the ability to integrate more than 175 APIs, our ecosystem supports real-time connectivity with internal banking systems, fintech partners, government APIs, credit bureaus, fraud detection engines, and compliance tools. Additionally, this allows banks and financial institutions to no longer be constrained by what their systems can support—they are empowered to lead with what their customers demand. The transformation is not incremental. It is structural. And it is happening now. It's time to reimagine lending and reinvent success. By Ravish Pandey, Head of Product Innovation, and Sachin Gupta, Head of Client Accounts and Engagement at BUSINESSNEXT AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
an hour ago
- Time of India
Goa stands to benefit from India-UK free trade agreement: GCCI
Panaji: The India-UK free trade agreement (FTA) will significantly benefit Goa's pharmaceutical companies, tourism sector, and feni producers, said the Goa Chamber of Commerce and Industry (GCCI) on Saturday. GCCI president Pratima Dhond said that the recent signing of the trade agreement between the two nations could provide a much-needed boost to Goa's economy. The FTA provides zero-duty access to the UK market for nearly 99% of Indian exports, including pharmaceuticals. While the UK imports nearly $30 billion worth of medicines and medical devices, India's pharma exports to the UK currently stand at under $1 billion. The bilateral agreement is anticipated to unlock major export opportunities for the sector. Goa is ranked sixth in pharmaceutical exports, with an overall share of 5.6%. 'This landmark agreement is expected to significantly enhance trade and investment opportunities between India and the UK, with far-reaching benefits for the state,' she said. The FTA could lead to increased travel and tourism opportunities between India and the UK, and this will benefit Goa's tourism industry. Dhond said that Goa's feni industry will gain recognition in the British market with geographical indication protection, opening up new export opportunities. 'This will be a major boost for govt, which is promoting exports of Indian alcoholic beverages to global markets,' she said. Meanwhile, duty-free exports of marine products to the UK, textile businesses, and IT services also stand to benefit from the trade agreement, boosting the state's economy over the long term, said GCCI. The UK imports around $5.4 billion worth of marine products such as prawns, tuna, mackerel, sardines, squid, crab, and pomfret. India's current share in the UK's marine imports is just 2.3%, but this share is projected to double after the FTA. All coastal states stand to benefit from export-led job creation. 'Indian professionals, including those from Goa, will have easier access to the UK market, with relaxed visa procedures and exemptions from UK social security contributions,' said Dhond.
