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India’s auto sector showed resilience in April 2025, with car sales rising 3.9 per cent year-on-year to 3,48,847 units, up from 3,35,629 units in April 2024, according to data released by the Society of Indian Automobile Manufacturers (SIAM). A strong export performance and improving rural sentiment are expected to support further growth in the coming quarters.

Exports from India remained a bright spot. Car exports surged nearly 20 per cent to 59,395 units, while two-wheeler exports rose 14.7 per cent to 3,68,201 units. SIAM attributed this to rising global demand for vehicles made by Maruti Suzuki, Hyundai India, Mahindra and others.

Domestic two-wheeler sales fell sharply by 16.7 per cent YoY to 14,58,784 units in April. The decline was largely due to a high base in April 2024.

“The two-wheeler segment de-grew due to the high base effect of April last year, while it is likely to pick up in coming months,” said Rajesh Menon, Director General, SIAM. He added that higher farm incomes from a record rabi harvest and increased MSPs are expected to drive rural demand going forward.

The combined sales of passenger vehicles, two-wheelers, three-wheelers, and quadricycles stood at 23,18,882 units in April 2025. This includes all segments that contribute to India’s domestic vehicle market.

April also marked a smooth transition for the auto industry into stricter environmental norms. “The industry transitioned to the second stage of On-Board Diagnostics (OBD-2) for two- and three-wheelers and rolled out E20-compliant vehicles across India,” Menon noted.

A recent Crisil Ratings report suggests that passenger vehicle dealerships will see revenue growth of 100 basis points in FY26.

Himank Sharma, Director, Crisil Ratings, said: “Rising urban disposable incomes, tax revisions, rate cuts and SUV demand will drive PV growth. A normal monsoon and MSP hikes will also aid rural vehicle sales.”

The auto sector seems set for a robust FY26 start, riding on exports, rural revival, and regulatory compliance.

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