PV sales may hit speed bump in FY25

Passenger vehicle (PV) sales are expected to end the 2024-25 fiscal year on a flat note, with wholesale figures reaching 3.82 million units by February.

- SOHINI DAS

In 2023-24, PV volumes hit an all-time high of 4.2 million units. Between April 2024 and March 2025, PV wholesales grew by 2.12 per cent, reaching 3.82 million units in YTD FY25, compared to 3.74 million units in the same period the previous year.

In February, PV wholesales were the highest ever for the month at 377,689 units, according to data from the Society of Indian Automobile Manufacturers (Siam). With March sales expected to be at a similar level, the overall number for FY25 is projected to be close to 4.2 million units, indicating flat growth.

Analysts have accordingly predicted stagnant growth for the fiscal year. Icra estimated industry growth in FY25 at around 0-2 per cent. "Most of the demand drivers for the industry — disposable incomes, new model launches, cost of ownership, etc. — remain neutral or favourable. Accordingly, even as the base for the industry continues to remain high, Icra estimates PV industry volumes to grow at a moderate pace of 4-7 per cent in FY26," the ratings agency said.

However, automobile original equipment manufacturers (OEMs) have forecast even slower growth for FY26.