Passenger Vehicle Sales Rise 1.9% in February, Two-Wheeler Sales Decline by 9%: SIAM
Passenger Vehicle : The Indian automobile industry witnessed mixed trends in February 2025, with passenger vehicle (PV) sales seeing modest growth while two-wheeler sales recorded a sharp decline. According to the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle dispatches from factories to company dealers rose by 1.9% year-on-year (YoY) to 3,77,689 units in February. However, two-wheeler sales fell by 9% YoY to 13,84,605 units, indicating a slowdown in demand in this segment.
Passenger Vehicle Sales See Steady Growth
The 1.9% increase in passenger vehicle sales compared to 3,70,786 units in February 2024 suggests a stable demand for cars and SUVs despite market challenges. Factors such as improved consumer sentiment, new model launches, and better financing options have supported this steady growth.
Industry experts believe that the electric vehicle (EV) segment and premium car sales have contributed significantly to the increase in PV sales. Additionally, easing supply chain constraints and improved semiconductor availability have helped manufacturers meet demand efficiently.
Two-Wheeler Sales Face a Decline
On the other hand, the two-wheeler segment saw a significant drop of 9%, with sales falling from 15,20,761 units in February 2024 to 13,84,605 units last month. Analysts attribute this decline to several factors, including:
- High fuel prices, which continue to impact the affordability of two-wheelers.
- Economic uncertainties, leading to cautious consumer spending.
- Increased preference for premium motorcycles, affecting the demand for entry-level models.
- Growing adoption of electric two-wheelers, which is disrupting traditional petrol-driven bike sales.
While the decline is concerning, industry leaders expect demand to recover in the coming months, driven by new product launches and a shift toward electric mobility.
Industry Insights and Market Trends
- SUVs Drive Growth: The SUV segment continues to dominate the passenger vehicle market, with increasing preference for feature-loaded and fuel-efficient models.
- Rural Demand Sluggish: The two-wheeler market, which heavily depends on rural buyers, has seen lower demand due to delayed income recovery and inflation concerns.
- Electric Vehicles on the Rise: Both the two-wheeler and passenger vehicle segments are experiencing a surge in EV adoption, impacting conventional vehicle sales.
- Financing Plays a Key Role: Auto loans and flexible financing options are driving passenger vehicle purchases, while cost-conscious buyers in the two-wheeler market remain hesitant.
Financial Ratios and Key Data
| Segment | February 2025 | February 2024 | YoY Change (%) |
|---|---|---|---|
| Passenger Vehicles | 3,77,689 | 3,70,786 | +1.9% |
| Two-Wheelers | 13,84,605 | 15,20,761 | -9% |
| SUV Sales Growth | – | – | Rising |
| Rural Demand | – | – | Declining |
| EV Adoption | – | – | Increasing |
Future Outlook
Despite a dip in two-wheeler sales, industry players remain optimistic about the market’s long-term prospects. The upcoming festive season, coupled with policy incentives for EV adoption, is expected to drive growth. Additionally, government initiatives such as the FAME II scheme (Faster Adoption and Manufacturing of Electric Vehicles) could further accelerate the shift towards electric mobility.
Frequently Asked Questions (FAQs)
1. Why did passenger vehicle sales increase in February 2025?
Passenger vehicle sales rose by 1.9% due to strong demand for SUVs, improved financing options, and better semiconductor supply.
2. What caused the decline in two-wheeler sales?
The 9% decline in two-wheeler sales was driven by high fuel prices, economic uncertainties, and a shift towards premium and electric models.
3. How is the electric vehicle market impacting traditional car and bike sales?
EV adoption is increasing, particularly in the two-wheeler segment, affecting petrol vehicle sales as more consumers opt for electric alternatives.
4. Will the automobile industry see growth in the coming months?
Yes, industry experts expect growth in the coming months, fueled by new product launches, improved rural demand, and a rise in electric vehicle adoption.
5. What factors influence vehicle sales in India?
Key factors include fuel prices, economic conditions, financing availability, government policies, and consumer preferences for SUVs and EVs.
Conclusion
While the automobile sector has seen mixed trends in February, the overall outlook remains promising. Passenger vehicle sales have shown resilience with steady growth, while the two-wheeler segment faces short-term challenges. As the industry navigates changing consumer preferences and increasing EV adoption, the coming months will be crucial in shaping the market’s trajectory.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.