Auto sales May 2025: Bike sales rise, car demand slips, says SIAM

India’s auto market remained steady in May 2025, as two-wheelers bounced back after a weak April, while passenger vehicle sales dipped slightly due to a record-high base last year. According to data from the Society of Indian Automobile Manufacturers (SIAM), overall dispatches showed modest growth, with mixed performance across key segments.

According to data released by the Society of Indian Automobile Manufacturers (SIAM), wholesale dispatches of passenger vehicles in the domestic market fell by 0.8 percent year-on-year to 3,44,656 units in May 2025, compared to 3,47,492 units in May 2024. Despite the marginal decline, May 2025 still recorded the second-highest passenger vehicle sales for the month of May on record. Utility vehicles continued to lead the segment, accounting for nearly 65 percent of all PV sales.

Two-wheeler sales rose by 2.2 percent year-on-year to 16,55,927 units in May 2025, up from 16,20,084 units a year earlier. This marked a strong recovery from April 2025, when sales had dropped by 16.7 percent to 14,58,784 units due to a high base and weak rural sentiment. The recovery in May was supported by improving rural demand, new product launches and expectations of above-normal rainfall.

Three-wheeler sales, however, saw a dip of 3.3 percent year-on-year to 53,942 units, down from 55,763 units in May 2024. The month also saw the dispatch of one quadricycle.

Overall, domestic wholesale volumes across passenger vehicles, two-wheelers, three-wheelers and quadricycles rose by 1.54 percent year-on-year to 20,54,526 units in May 2025, compared to 20,23,371 units in the same month last year. Total vehicle production stood at 25.82 lakh units for the month.

Industry leaders remain cautiously optimistic about the months ahead. According to SIAM, the Reserve Bank of India’s recent monetary easing and a positive monsoon outlook are expected to boost affordability and improve consumer sentiment. The RBI has cut the repo rate by a total of 100 basis points over the last six months.

“Going forward, the RBI’s rate cuts and the forecast of a good monsoon are positive indicators. These should support demand across segments in the coming quarters,” said Rajesh Menon, Director General, SIAM.

With two-wheelers back on track and passenger vehicles holding close to last year’s highs, the industry appears to be on a stable footing as it heads into the second quarter of the financial year.