Passenger vehicle sales in February rose to an all-time high of 3.78 lakh units, a growth of 1.9% on a year-on-year basis, while two-wheeler sales declined 9% to 13.85 lakh units. The SIAM data shows that wholesales have strengthened just a week after retail sales warned of a significant drop.
The Indian automobile industry has shown strength in wholesales, with the latest data from SIAM showing the highest ever wholesales of passenger vehicles in the month of February.
However, this comes just a week after the Federation of Automobile Dealers Associations (FADA) warned of a significant drop in retail sales during the same month, warning of inventory buildup at dealer yards.
Total wholesale production of passenger vehicles, three-wheelers, two-wheelers and quadricycles reached 23,46,258 units in February 2025. Passenger vehicle sales grew by 1.9% compared to February 2024, reaching 3,77,689 units, the highest ever February sales for this segment in terms of factory dispatches to dealerships.
However, this growth is in contrast to the retail sales figures reported by FADA, which saw actual registrations decline across most segments in February.
This discrepancy highlights the growing gap between wholesale figures (reported by SIAM) and retail numbers (tracked by FADA), as manufacturers continue to dispatch vehicles to dealers despite slow consumer demand.
Passenger carriers and goods carriers in this category grew by 6.8% and 5.9%, respectively, while electric rickshaws and carts saw sharp declines of 50.9% and 30.6%.
The two-wheeler segment, which forms the bulk of India’s automobile market, saw wholesale dispatches decline by 9% year-on-year, taking sales down to 13,84,605 units. Motorcycles declined the most with a 13.1% drop, while scooters remained relatively stable with a drop of just 0.5%.
Mopeds continued to suffer a downtrend with a drop of 18.2%. “The passenger vehicle segment remained resilient and recorded its highest ever sales in February 2025,” said Rajesh Menon, Director General, SIAM. He expressed optimism about the industry’s near-term prospects, noting that “the upcoming festivals of Holi and Ugadi in March are likely to continue to drive demand growth, leading to FY 2024-25 ending on a largely positive note.”
FADA has suggested that dealers are facing severe inventory pressure, especially in the two-wheeler and passenger vehicle segments, with stocks reaching worrying levels in some regions.
This inventory buildup indicates that manufacturers may increase wholesale numbers to meet year-end targets despite slow retail demand. The mixed performance reflects changes in consumer preferences and economic conditions in India’s automotive market.
While the passenger vehicle segment continues to show resilience in wholesale numbers despite inflationary pressures, a significant drop in two-wheeler sales and cautious retail figures indicate potential economic stress among middle- and low-income consumers.
The increase in passenger vehicle wholesale dispatches could be due to new model launches, year-end sales targets and growing preference for personal mobility post the pandemic.
The decline in electric rickshaws, despite the government’s push for electrification, indicates challenges in the process of electric vehicle adoption at the mass market level. This data does not include figures for luxury carmakers BMW, Mercedes, JLR and Volvo Auto.
Passenger vehicle sales jump record high in February, rise 1.9%: SIAM
