India auto industry sees record exports in Q1 despite domestic sales dip in June 2025

Hindustan Times

16-07-2025

Domestic sales of two-wheelers in June stood at 15,59,851 units, a decline of 3.4 per cent. Scooters and motorcycles fell by 1.7 per cent and 3.7 per cent, respectively (Photo is representational)
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The Indian automotive industry reported a muted domestic performance during June 2025, but a silver lining was provided by exports, which helped lift overall quarterly mood. The latest numbers from the Society of Indian Automobile Manufacturers (SIAM) show total domestic vehicle sales for the month fell 3.6 per cent year-on-year to 18,97,445 units, while exports jumped 28.1%, to 5,02,131 units.
In spite of a weak month, Q1 FY2025–26 (April–June 2025) gave some big highs, especially in exports, which rose by 22.2 per cent compared to the previous year to 14.57 lakh units, as driven by high overseas demand for two-wheelers, PVs, and three-wheelers. Passenger Vehicles
In June 2025, sales of passenger vehicles (PVs) fell 6.3 per cent year-on-year to 2,75,766 units, passenger cars fell 15.3 per cent and vans fell 13.3 per cent. Utility vehicles (UVs), which now contribute 66 per cent of total PV sales, remained resilient, dipping just 0.9 per cent.
Also Read : Indian auto sector faces tough Q1 FY26 as costs climb and exports slow: Report
For the full Q1 period, domestic PV sales fell 1.4 per cent to 10,11,882 units, while exports surged by 13.2 per cent to an all-time high of 2,04,330 units. This growth was fuelled by robust demand in Latin America, the Middle East, and Free Trade Agreement (FTA) markets like Australia and Japan. Two-Wheelers
Domestic sales of two-wheelers in June stood at 15,59,851 units, a decline of 3.4 per cent. Scooters and motorcycles fell by 1.7 per cent and 3.7 per cent, respectively, while mopeds saw a deeper 17.4 per cent drop.
For Q1 FY26, total two-wheeler domestic sales declined 6.2 per cent to 46.74 lakh units, impacted by inventory corrections. However, exports jumped 23.2 per cent, with 11.36 lakh units shipped, thanks to a rebound in demand from Africa, South Asia, and Latin America.
Also Read : Indian auto exports rise sharply as home market remains sluggish in June: Report Industry Outlook: Eyes on festive season and financing relief
Commenting on the Q1 performance, Shailesh Chandra, President of SIAM, acknowledged that while retail demand showed slight improvement over wholesale figures, the industry continues to grapple with macroeconomic uncertainty and persistent supply-side challenges. He spoke of guarded optimism for the next quarter, saying the next festival season and accommodative monetary policy will improve consumer sentiment over the course of time.
The industry is pinning its hopes on a combination of factors to drive a recovery in Q2 — including festive season demand, the positive impact of an above-normal monsoon on rural incomes, and improved affordability driven by a cumulative 100 basis point cut in the RBI's repo rate. Still, Chandra also pointed to potential headwinds, most notably China's imposition of rare earth magnets export licensing restrictions recently, which might interrupt electric and hybrid vehicle production plans in the months that follow
The first quarter of FY2025–26 paints a cautious yet promising picture. While domestic volumes were challenged, record-high exports across all major segments reaffirm India's rising importance as a global automotive hub.
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First Published Date: 16 Jul 2025, 09:33 am IST