February 2025 auto sales set new benchmarks, with SUVs growing by 10.6%, three-wheelers up 4.7%, and two-wheelers declining by 9%.
The Indian auto industry witnessed a record-breaking performance in February 2025, driven by the continued demand for SUVs and three-wheelers, even as the two-wheeler segment declined. According to data from the Society of Indian Automobile Manufacturers (SIAM), the month saw a 1.9% year-on-year (YoY) increase in passenger vehicle sales, setting a new benchmark for February.
Key Highlights from SIAM’s February 2025 Auto Report
Two-Wheelers: 13,84,605 units (-9.0% YoY), reflecting sluggish demand amid economic pressures and changing mobility trends.
- Passenger Vehicle Sales: 3,77,689 units (+1.9% YoY), marking the highest-ever February sales recorded.
- SUV & Utility Vehicles: 2,45,508 units (+10.6% YoY), highlighting the growing consumer shift towards bigger vehicles.
- Three-Wheelers: 57,788 units (+4.7% YoY), continuing their upward trend, supported by urban and commercial demand.
SUV Boom Continues to Dominate Market Trends
The SUV segment remains the strongest growth driver in India’s auto industry. With a 10.6% increase in sales, utility vehicles accounted for over 60% of total passenger vehicle sales in February. Companies such as Mahindra & Mahindra, Hyundai Motor India, and Maruti Suzuki saw a surge in SUV demand, fueled by new model launches and consumer preference for spacious, feature-rich vehicles.
According to SIAM Director General Rajesh Menon, the industry’s performance was largely driven by utility vehicles, as consumers increasingly favor SUVs over sedans and hatchbacks. “The demand for SUVs has reshaped the Indian automobile market, with companies ramping up production to meet the surge,” he said.
Three-Wheelers Maintain Positive Growth Amidst Rising Urban Demand
The three-wheeler market recorded a 4.7% growth, with passenger carriers leading the segment. The demand for urban shared mobility solutions, including auto-rickshaws and electric three-wheelers, contributed to this consistent rise. Bajaj Auto, Piaggio Vehicles, and TVS Motor Company remained top players in this category, with strong domestic sales and exports.
Industry analysts attribute this growth to rising fuel prices and government incentives for electric three-wheelers, particularly in urban centers like Delhi, Mumbai, and Bengaluru.
Two-Wheelers Face Decline, Market Sentiment Remains Weak
While passenger vehicles and three-wheelers saw gains, the two-wheeler segment declined by 9% YoY, with sales falling to 13,84,605 units.
The decline was primarily due to:
- Weaker rural demand, where motorcycles are traditionally popular.
- Economic factors, including fuel price hikes and high ownership costs.
- Shifting consumer preferences towards electric two-wheelers, though adoption remains slow.
Major brands like Hero MotoCorp, Honda Motorcycle & Scooter India, and Bajaj Auto saw fluctuations in demand, though scooters showed resilience, particularly in urban markets.
Export Markets Continue Strong Performance
India’s vehicle exports remained a key highlight, especially for two-wheelers, which saw a 19.3% YoY increase, driven by demand from Latin America and Africa.
- Passenger Vehicle Exports: 56,638 units (+4.8% YoY)
- Three-Wheeler Exports: 26,024 units (+0.7% YoY)
- Two-Wheeler Exports: 3,91,408 units (+19.3% YoY)
