Mumbai: Auto sales in India (all segments) rose marginally by 1.5% over the same period last year led by a 2% growth in two wheelers. With the exception of scooters and motorcycles, dispatches across most of the segments— counted as sales, either remained muted or declined over the same period last year as manufacturers curtailed shipments to dealers to align supplies to a persistent slowdown in demand. Overall sales during the period rose to 20,54,525 units over 20,23,403 units, according to Society of Indian Automobile Manufacturers (SIAM).

Passenger vehicle dispatches in India –counted as sales, declined marginally by 0.8% in May to 3,44,656 units in May over 3,47,492 units last year, the auto lobby said. compared to the same month last year as buyers deferred purchase due to overall tepid consumer sentiments impacted by the stock market volatility and India Pakistan war. If not for the 7.6% growth seen in utility vehicles (UVs), the overall sales would have seen a steeper fall due to a sharp decline of 12% in car sales. Dragged down by the weak demand for entry level and compact cars, both of which continued to hurtle down, car sales in the local market contracted to 93,951 units in May 2025 from 106952 units a year ago.

“Passenger Vehicles segment posted sales of 3.45 Lakh units, though 2nd highest ever of May, the segment de-grew marginally by (-) 0.8% compared to May 2024,” said Rajesh Menon, Director General, Siam. Going forward, the RBI’s three repo rate cuts totalling 100 basis points in less than six months, along with a forecast of above-normal monsoons are some of the indicators which should positively impact the auto sector by improving affordability and boosting consumer sentiment in the coming months,” he noted.

Three-wheeler sales during the month dipped 3.3% to 53,942 units over the year ago period. The passenger carriers declined, while goods carriers remained subdued. Exports surged 36.7% to 31,084 units.

While the overall two-wheeler sales edged up 2.2% to 1,655,927 units, scooters rose 7.1% to 579,507 units, motorcycles remained flat at 1,039,156 units, and electric two-wheelers saw steady gains led by TVS, Bajaj, and Ather. “Rural demand challenges persist, but urban premium and electric segments show promise,” Menon noted.

Total vehicle production during the month grew 5.2% to 2,582,207 units; exports rose 22.8% to 479,538 units. With a normal monsoon and upcoming launches in the festive season, the industry stays cautiously optimistic for the fiscal year ahead.May 2025 Vs May 2024 (in units)Total Passenger Vehicles– 3,44,656 Vs 3,47,492 — down 0.8% YoY

Total Three Wheelers —53,942 Vs 55,763– up 3.3% YoY

Total Two Wheelers– 16,55,927 Vs 16,20,084, up 2.2% YoY