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The domestic passenger vehicle market in India has seen a slight decrease in wholesales, with figures dropping by 0.8 percent in May. A total of 344,656 units were sold in comparison to 347,492 units during the same month last year. This revelation comes from a recent report by the Society of Indian Automobile Manufacturers (SIAM). While some segments of the market experienced growth, the overall performance in passenger vehicles demonstrates a nuanced story for the auto industry.
Despite the minor decline in passenger vehicle sales, SIAM reported that the performance across vehicle categories remained stable. In fact, two-wheeler dispatches showed an increase of 2.2 percent, amounting to 1,655,927 units as opposed to 1,620,084 units in May 2024. This growth in two-wheelers highlights a robust consumer interest in this segment, suggesting that while passenger vehicles faced a dip, there is still significant activity in the broader market.
Total vehicle wholesales across categories rose by 1.8 percent, hitting 2,012,969 units compared to 1,976,674 units in the previous year. Rajesh Menon, SIAM’s Director General, commented on these figures, stating that all vehicle segments posted stable performance in May 2025. It is interesting to note that despite the fall in passenger vehicle sales, the total sales volume for passenger vehicles reached the second highest level for May on record.
In terms of leading brands, Maruti Suzuki, known as the market leader in passenger vehicles, reported a decline in domestic sales. A total of 135,962 units were sold, down from 144,002 units in the same month the previous year. In contrast, Mahindra & Mahindra experienced a positive shift, clocking 52,431 units compared to 43,218 units a year ago. Meanwhile, Hyundai Motor India faced a similar fate to Maruti, with sales totaling 43,861 units, down from 49,151 units in May 2024.
When looking at the two-wheeler sales more closely, the motorcycle segment reported nearly flat sales at 1,039,156 units, just up from 1,038,824 units from last year. However, the scooter segment has clearly thrived with a notable increase of 7.1 percent, totaling 579,507 units sold, in comparison to 540,866 units in May the previous year. This points to a growing preference among consumers for scooters, which could be considered a reflection of urban commuting trends.
In contrast, the three-wheeler sales faced a downturn, dropping by 3.3 percent to 53,942 units from 55,763 units in May last year. This mixed performance across categories creates a complex landscape for the auto market. While the overall figures show stability, certain segments are clearly performing better than others.
Looking forward, Rajesh Menon expressed optimism about the market’s future. The recent three repo rate cuts by the Reserve Bank of India, totaling 100 basis points in under six months, coupled with forecasts for above-normal monsoons, could lead to more affordable vehicle purchases. These factors are expected to positively impact the auto sector, enhancing consumer sentiment and driving sales in the coming months.
As the auto industry navigates these challenging waters, it is essential to consider the underlying reasons behind the declines in certain segments versus the uptick in others. The consumer preferences appear to be shifting, particularly towards two-wheelers and scooters, as urban commuters seek practicality and affordability in their transportation choices.
Overall, while the domestic passenger vehicle market has experienced a slight decrease in May, the broader picture reveals a stable landscape that could be gearing up for a rebound. With several economic factors favoring consumers, particularly in affordability, the auto sector may see some positive transformations in the upcoming months. The industry is keenly watching these developments, poised to adapt to the changing preferences and economic indicators.
In conclusion, while May’s figures show mixed results in the vehicle sales landscape, the prospects look encouraging for the auto sector as it moves forward. The interplay of consistent production, stable demand in two-wheelers, and favorable economic conditions could set the stage for a rejuvenated market in the weeks and months ahead.
