Vehicle Sales Overview
Passenger vehicle sales in the fiscal year 2025 experienced a 2% increase, illustrating a steady, yet not overwhelming, growth. Conversely, the two-wheeler
segment demonstrated a more robust performance, with sales surging by 9% during the same period. November 2025 witnessed a continuation of these patterns, with passenger vehicle sales up by 2% and two-wheelers recording a 9% rise. These figures, reported by the Society of Indian Automobile Manufacturers (SIAM), suggest a varied pace of expansion across different vehicle categories within the Indian market. Various factors influenced these trends, including seasonal influences and consumer preferences, which played pivotal roles in shaping the dynamics of the market during that time.
New Model Launches
The year 2025 saw a wave of new vehicle launches across different categories. Noteworthy among these were models like the MG 7, Leapmotor B10, Mahindra XUV900, and Kia EV5. In the two-wheeler sector, the KTM 160 Duke with a TFT dash was introduced at a price of Rs 1.79 Lakh. The launches included a range of electric vehicles (EVs) such as the BYD New Atto 3 EV, Renault Kwid EV, and Tata Sierra EV. Other models like the Volvo EX90 Recharge, Maserati Grecale Folgore, and Skoda Kamiq also entered the market, providing consumers with a diverse range of options. This flurry of new models reflected the industry's efforts to cater to evolving consumer demands and preferences.
Electric Vehicle Push
Electric vehicles (EVs) gained significant traction in the Indian market during this period. Several new EV models were introduced, demonstrating a growing trend towards electric mobility. Among these were the BYD New Atto 3 EV, Renault Kwid EV, and Tata Sierra EV. Further expanding the EV offerings were the MG 4 EV, Mahindra XUV 3XO EV, and Tesla Model X. The launch of these EVs mirrored the global shift towards sustainable transportation and the Indian government's focus on promoting electric vehicles. The increased availability of EVs gave consumers more environment-friendly choices and pushed the sector towards a sustainable future.
Market Dynamics & Trends
The automotive market in 2025 was impacted by several critical factors. The industry was influenced by post-festive season sales, which were aided by benefits like GST incentives and discount offers. Two-wheeler manufacturers generally saw double-digit growth, whereas passenger vehicle and two-wheeler sales saw lackluster performances during the first quarter of the 2026 fiscal year. These shifts indicate the fluctuating market conditions and consumer behavior. Issues such as recalls, including those affecting Porsche Taycan and Audi E-Tron GT due to potential battery fire risks, and Skoda models over seatbelt issues, highlighted the importance of safety standards and quality control in the automotive sector.
Future Outlook
Looking ahead, the market revealed signs of continuous evolution and adjustments. The upcoming launches, such as the Nissan Gravite MPV (a Renault Triber derivative), signaled future trends. The growing significance of EVs and the government's push for ethanol blending reflect the industry's moves towards innovation and sustainability. These developments suggest a promising future for the automotive sector in India, driven by new technologies, consumer preferences, and environmental awareness, shaping its trajectory towards progress and adaptability. This will require automakers to stay agile and responsive to the evolving demands.
