Car sales take hit in May, two-wheeler segment in green: SIAM

The volumes were encouraging in both passenger vehicle and two-wheeler segments in May 2025.

The domestic passenger vehicle (PV) volumes took a slight hit in May 2025 owing to a record base, while the two-wheeler segment showed signs of resilience as the wholesales were back in green after a poor performance last month.

According to data from the industry body Society of Indian Automobile Manufacturers (SIAM), the PV wholesales in the domestic market marginally declined by 0.8% year-on-year (y-o-y) at 344,656 units in May 2025.

Although May 2025 recorded the second-highest-ever May PV volumes, May 2024 witnessed the best-ever PV wholesales for May during any year at 347,492 units.

The SIAM data reveals vehicle dispatches from the original equipment manufacturers (OEMs) to their dealerships.

The domestic two-wheeler volumes increased 2.2% y-o-y at 1,655,927 units in May 2025 from 1,620,084 units in the same month last year.

For reference, the two-wheeler wholesales had dropped by a massive 16.7% y-o-y at 1,458,784 units in April 2025. This was again on a high base of 1,751,393 units in April 2024.

The three-wheeler wholesales in the domestic market slipped 3.3% y-o-y at 53,942 units in May 2025 from 55,763 units in the year-ago month. During the month under consideration, a quadricycle was also sold.

Domestic auto sales

The cumulative domestic wholesales, including those of PVs, two-wheelers, three-wheelers and quadricycles, climbed 1.54% y-o-y at 2,054,526 units in May 2025 from 2,023,371 units in May 2024.

According to SIAM, multiple repo rate cuts by the Reserve Bank of India (RBI) and above normal rainfall forecast by the India Meteorological Department (IMD) are expected to give a positive push to the sector.

"Going forward, the RBI's three repo rate cuts totalling 100 basis points in less than six months, along with a forecast of above-normal monsoons, are some of the indicators which should positively impact the auto sector by improving affordability and boosting consumer sentiment in the coming months," said Rajesh Menon, Director General, SIAM.

Auto exports

The export segment continued its handsome performance with the cumulative shipments, including those of PVs, two-wheelers, three-wheelers and quadricycles, rising 22.8% y-o-y at 479,538 units in May 2025 from 390,518 units in the same month last year.

Auto production

The production during the month under consideration remained buoyant even as the industry grapples with the rare earth magnet crisis, which might have an impact from July 2025 onwards.

The cumulative production of PVs, two-wheelers, three-wheelers and quadricycles increased 5.2% y-o-y at 2,582,207 units in May 2025 from 2,455,637 units in May 2024.