Car sales in India up by 3.9% in April; two-wheeler sales decline amid export surge

India’s domestic car sales rose by 3.9% year-on-year in April 2025, reaching 3,48,847 units compared to 3,35,629 units sold in the same month last year, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM) on Thursday.

The data also revealed a strong uptick in exports. Passenger car exports jumped nearly 20% to 59,395 units, while two-wheeler exports climbed 14.7% to 3,68,201 units in April. SIAM attributed the rise to increasing global acceptance of vehicles manufactured by Indian automakers such as Maruti Suzuki, Hyundai India, and Mahindra.

Despite the export momentum, domestic two-wheeler sales saw a sharp decline, falling 16.7% to 14,58,784 units in April 2025, down from 17,51,393 units in April 2024. SIAM Director General Rajesh Menon said the dip was largely due to the high base effect of last year.

“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,” Menon stated.

He added that the segment is expected to recover soon, supported by record rabi harvests, higher farm incomes, and an increase in the government’s minimum support prices (MSP).

In total, sales across all vehicle segments—including passenger vehicles, two-wheelers, three-wheelers, and quadricycles—stood at 23,18,882 units in April 2025.

The month also marked a regulatory milestone for the industry. From April onwards, the sector has transitioned to the second stage of On-Board Diagnostics (OBD) 2 regulations for two- and three-wheelers. In addition, E20-compliant gasoline vehicles are now being rolled out across the country.

Meanwhile, a recent report by Crisil Ratings projected modest revenue growth for the domestic passenger vehicle dealership industry in FY26.

“Revenue growth is expected to rise by around 100 basis points this year, driven by a recovery in sales volumes, though price realisations are likely to remain range-bound,” said Himank Sharma, Director, Crisil Ratings.

He added that urban demand will be supported by higher disposable incomes, aided by revised tax slabs, interest rate cuts, and moderate inflation. At the same time, rural sales are also set to gain from favourable monsoons and higher MSPs, contributing to improved farm incomes.