Car sales in April 2025: Dispatches maintain pace, demand still weak

Time of India

02-05-2025

New Delhi:
Even as FY 2024–25 closed with low single-digit growth in passenger vehicle (PV) sales, early estimates suggest the industry maintained a similar trajectory in April 2025.
For three of the top four carmakers, which together command over 75 per cent of the domestic PV market, year-on-year dispatch growth remained sluggish, according to data released by the companies on Thursday.
The market appears divided, with one segment of consumers deferring purchases amid economic uncertainty, while more affluent buyers continue to drive demand, particularly for SUVs.
In April 2025, market leader Maruti Suzuki posted marginal growth, dispatching 1.38 lakh units compared to 1.37 lakh units in the same month last year.
On the other hand, tepid consumer sentiment weighed on Hyundai Motor India and Tata Motors as they reported a year-on-year decline in dealer dispatches.
Tarun Garg, Chief Operating Officer at Hyundai Motor India acknowledged the challenges, stating that the domestic market continues to face headwinds due to various macroeconomic factors. However, he emphasised that the company remains focused on strengthening its export performance.
Domestic DispatchesApril 2025April 2024% changeMaruti Suzuki1,38,7041,37,9520.5M&M52,33041,00828Tata Motors45,19947,883-6Hyundai44,37450,201-12Toyota Kirloskar24,83318,70033Kia 23,62319,96818JSW MG Motor5,8294,72523Honda Cars3,3604,351-23
The slowdown in growth rates also reflects carmakers' cautious approach to dealer dispatches, aimed at avoiding inventory buildup amid uncertain demand. However, if the trend continues, it could raise concerns on the retail front, potentially resulting in increased discounts and promotional offers to stimulate sales.
Industry watchers also note that Hyundai and Tata Motors are being affected by a lack of fresh model launches in their portfolios—an area where Mahindra & Mahindra (M&M) is gaining a competitive edge by capitalising on its newer offerings.
In April, Mahindra, along with Toyota Kirloskar Motor, Kia, and JSW Motor, continued to post double-digit growth, driven largely by robust demand for their SUV models. Notably, Mahindra also overtook both Hyundai and Tata Motors to claim the No. 2 spot in the domestic passenger vehicle market during the month.
Toyota Kirloskar noted that its growth was sustained despite a scheduled maintenance shutdown from April 21–25, 2025, which was carried out to ensure the upkeep of machinery and maintain operational efficiency, productivity, and safety.
Kia, which is set to unveil its all-new Clavis MPV next week, said the brand's sales were led by its Sonet with 8,068 units, followed by Seltos at 6,135 units. Carens continued to see steady demand with 5,259 units, while the relatively new Syros contributed 4,000 units. The premium Carnival Limousine added 161 units to the overall tally.
Honda Cars India also reported a double-digit YoY decline during April. The company's Vice President, Marketing & Sales, Kunal Behl, said, 'In view of the prevailing market conditions and subdued consumer sentiment, we have strategically moderated the dispatches in the month of April to maintain optimal inventory level across our network, ensuring operational efficiency and preparing for demand fluctuations without burdening the dealers.'
He further added that certain variants of Honda Elevate will be available at discounted prices during May.
Industry experts point out that consumer sentiment is being weighed down by concerns over a broader economic slowdown and the continued volatility in the stock markets, prompting many to postpone vehicle purchase decisions. The latest estimates peg India's real GDP growth at 6.5 per cent for 2024–25, marking a sharp deceleration from the 9.2 per cent expansion recorded in the previous fiscal year.
In a recent earnings call, Maruti Suzuki Chairman RC Bhargava referred to projections from the Society of Indian Automobile Manufacturers (SIAM), indicating that growth expectations for the PV segment in FY 2025–26 are muted at just 1–2 per cent. This marks a further slowdown from the modest 3 per cent growth recorded in the previous fiscal year, highlighting the industry's cautious outlook amid economic headwinds and shifting consumer behaviour.
It is worth noting that this phase of slow growth follows the past years of strong recovery and record-high car sales in the post-pandemic period. The industry had experienced a sharp rebound driven by pent-up demand, supply chain stabilisation, and increased preference for personal mobility-- momentum that now appears to be tapering off.