Mixed Fortunes for Indian Auto Industry in April 2025 as Exports Cushion Domestic Slump April 2025 data shows domestic sales facing headwinds, robust export growth and regulatory compliance helping the Indian auto sector maintain its footing
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The Indian automobile industry posted a mixed performance in April 2025, with exports providing a lifeline amid softening domestic demand across key segments, according to the latest data released by the Society of Indian Automobile Manufacturers (SIAM).
Passenger vehicles emerged as a bright spot, registering a strong uptick across all indicators. Production rose from 3,51,290 units in April 2024 to 3,89,202 units this April, while domestic sales climbed from 2,87,746 units to 3,03,648 units. Exports surged from 49,563 units to 59,395 units, suggesting that both local appetite and international demand remain intact in this segment. Rajesh Menon, director general of SIAM, stated, "Passenger vehicles segment posted its highest ever sales of April in 2025 of 3.49 lakh units, with a growth of 3.9 per cent as compared to April 2024."
The three-wheeler market told a slightly different story. While production edged up from 73,579 units to 76,603 units, domestic sales saw a marginal dip, slipping from 49,774 to 49,441 units. Exports, however, provided a lift with a notable rise from 22,481 to 27,524 units. Menon acknowledged this tempered performance, saying, "Three-Wheelers de-grew marginally by 0.7 per cent compared to April of previous year, with sales of 0.49 Lakh units."
It was the two-wheeler category that raised the most concern. Production dropped from 19,32,986 units in April 2024 to 18,52,866 units in April 2025, accompanied by a steep decline in domestic sales from 17,51,393 units to 14,58,784 units. The segment saw a 16.7 per cent contraction year-on-year. Menon attributed this decline to the statistical effect of last year's strong numbers, noting, "The Two-Wheeler segment de-grew by 16.7 per cent in April 2025, as compared to April 2024, with sales of 14.59 lakh units, due to high base effect of April last year, while it is likely to pick up in coming months."
Despite the domestic slump, two-wheeler exports offered a silver lining, growing from 3,21,050 units to 3,68,201 units. This underscores an important shift; Indian manufacturers are increasingly leaning on global markets to maintain momentum amid fluctuating domestic consumption.
The niche quadricycle segment saw a sharp correction. Production plummeted from 756 units in April 2024 to just 211 units in April 2025. Domestic sales fell drastically from 19 units to only 3 units, while exports slipped from 664 units to 210 units.
Across all categories, the industry produced a total of 23,18,882 vehicles in April 2025, slightly down from 23,58,611 units a year earlier. Domestic sales dropped from 20,88,932 units to 18,11,876 units, marking a broad-based contraction. Yet, total exports climbed significantly from 3,93,758 units to 4,55,330 units, illustrating the resilience and adaptability of Indian automakers in catering to overseas markets.
Adding context to the industry's broader transition, Menon highlighted recent regulatory shifts, stating, "Auto industry smoothly transitioned to the new regulatory regime of 2nd stage of On-Board Diagnostics (OBD) 2 regulation for two and three wheelers from April 2025 onwards, in addition to rolling out E-20 compliant gasoline vehicles across the country from this month." This seamless regulatory adoption demonstrates the sector's readiness to align with evolving environmental standards and future-focused mobility.
