In the fiscal year 2024-25 (FY25), India’s domestic passenger vehicle (PV) sales increased by 2.6% year-on-year, reaching 4.34 million units. This modest growth was influenced by factors such as sluggish urban demand, a high base effect, and declining sales of hatchbacks and sedans. In March 2025, domestic PV sales were between 380,000 and 390,000 units, compared to 368,016 units in March 2024.
Maruti Suzuki India Limited (MSIL), the country’s largest carmaker, reported domestic sales of 1.9 million units in FY25, a 2.7% increase from the previous year. Partha Banerjee, MSIL’s head of marketing and sales, noted that the post-pandemic demand surge was unsustainable and projected growth for FY26 would be similar to FY25, around 1-2%. He emphasized that the high growth rates seen post-COVID-19 were due to pent-up demand and that such levels were not sustainable in the long term.
Hyundai Motor India saw a 2.6% decline in PV dispatches to dealerships, totaling 598,666 units in FY25. Tata Motors experienced a 3% decrease in domestic PV sales, with 553,585 units sold. Shailesh Chandra, head of Tata Motors’; PV and EV divisions, described FY25 as a challenging year with fluctuating demand and highlighted that future demand growth would depend on macroeconomic factors like consumption growth, inflation, infrastructure spending, and geopolitical developments.
In contrast, Mahindra & Mahindra (M&M) and Toyota Kirloskar Motor (TKM) reported significant growth. M&M’s domestic sales surged by 27.9% to 337,148 units, while TKM’s sales increased by 19.9% year-on-year to 551,487 units. Varinder Wadhwa, head of sales, service, and used cars at TKM, attributed this growth to strong adoption of SUVs, MPVs, hybrids, robust export momentum, and deeper engagement in tier II and III cities, underscoring the relevance of their diverse product portfolio.
MSIL’s exports also grew by 17.5% year-on-year, reaching 332,585 units in FY25. Rahul Bharti, MSIL’s executive director of corporate affairs, expressed optimism for continued export growth in FY26, anticipating a significant boost from electric vehicle exports starting in 2025-26, with a target of exporting 750,000-800,000 units annually by the end of the decade.