India’s car sales hit record high, but growth slows to four-year low: SIAM

SIAM said it expects domestic demand to be boosted by successive rate cuts by India’s central bank, as well as a cut in personal income tax announced earlier this year.

Indian carmakers’ sales to dealers grew 2% in financial year 2025, as steady demand for larger sport utility vehicles made up for weaker sales of small cars and sedans, industry data showed on Tuesday.

Carmakers sold a record 4.3 million units in the world’s third-largest car market, according to the Society of Indian Automobile Manufacturers (SIAM), but the growth was at least a four-year low.

Since rising by 12% in fiscal year 2022 and 27% in 2023 to what was then a new record, India’s domestic car sales growth has moderated, rising 8% in 2024 and 2% in 2025.

India’s financial year runs from April through March.

The manufacturers in February estimated the industry would grow 1% to 2% in the current fiscal year, but analysts have called the forecasts conservative.

Carmakers have had to offer higher discounts for longer to prop up demand, as pent-up demand that had led growth in previous years fizzled out, analysts and industry insiders have said.

SIAM said it expects domestic demand to be boosted by successive rate cuts by India’s central bank, as well as a cut in personal income tax announced earlier this year.