Domestic Automobile, Overall Passenger Vehicle Sales Decline Compared to Last Year
The Wire Staff
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New Delhi: Data from the Society of Indian Automobile Manufacturers (SIAM) have revealed that India’s domestic automobile sales have reduced by 3.6% to 18,97,445 units in June 2025, as compared to the figures against the same month last year.
Moreover, the overall passenger vehicle sales declined 6.3% to 2.76 lakh units in the reporting month. While production of all automobiles also grew at a sluggish 1.2% in the reporting month, to 23,64,868 units, reported The Hindu.
As compared to June 2024, manufacturers sold only 85,091 which amounts to 15.3% lower than the figure last year.
Similarly, two wheeler sales too declined by 3.4% to 15.6 lakh units in the month.
The SIAM data also revealed that automobile sales slumped 5.1% to 60,74,874 in the quarter ended June 2025 as against the same month last year.
“The performance of the auto industry was relatively flat, though the retail registration for passenger vehicles, two-wheelers and three-wheelers were marginally higher than the previous Q1. Overall sentiments across categories have remained subdued so far, even as the industry continues to navigate supply-side challenges. With the upcoming festival season coupled with the benefits of RBI repo rate cuts, we expect consumer sentiments to improve, ” Shailesh Chandra President, SIAM told the newspaper.
In May this year, Maruti Suzuki Chairman R.C. Bhargava had said that most Indians simply cannot afford to buy even the most basic car anymore. This is not a matter of shifting aspirations or changing tastes, he insisted; it is a crisis of affordability, driven by stagnant incomes and relentless cost escalation.
Entry-level models, once the pride of India’s mass market, have seen sales tumble. Maruti Suzuki’s own small car segment, the traditional backbone of its business, recorded a 9% sales decline in 2024. Since 2020, regulatory changes have pushed up the cost of a small car by nearly Rs 90,000, putting even the humble Alto or WagonR out of reach for families with budgets of Rs 5-7 lakhs.
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