India’s auto industry presented a tale of two markets in April 2025, as passenger vehicle sales surged to record highs while two-wheeler dispatches slumped sharply. According to data released by the Society of Indian Automobile Manufacturers (SIAM), the passenger vehicles segment recorded its highest-ever April performance, dispatching 3.49 lakh units—a 4 percent year-on-year increase from April 2024.
This growth underscores continued consumer preference for four-wheelers, likely driven by strong demand in urban centres, rising disposable incomes, and the sustained rollout of feature-rich, mid-range models. SIAM Director General Rajesh Menon noted this milestone as a strong start to the fiscal year, reinforcing confidence in the PV segment’s long-term trajectory.
In stark contrast, two-wheeler sales dropped 17 percent year-on-year, down to 14.58 lakh units in April from 17.51 lakh units the previous year. The decline was led by a 23 percent fall in motorcycle dispatches and a 6 percent dip in scooter sales. Mopeds, too, saw an 8 percent decrease. While this sharp contraction raises concerns, Menon attributed the figures in part to a high base effect from April 2024 and expressed optimism about an uptick in the coming months.
The divergence in performance highlights a shifting dynamic in India’s mobility landscape. The two-wheeler segment, traditionally a bellwether of rural demand and first-time buyers, is now navigating structural challenges—including affordability pressures, increased financing constraints, and evolving consumer preferences in post-pandemic India.
Simultaneously, the industry has had to manage a significant regulatory transition. April marked the implementation of the second phase of On-Board Diagnostics (OBD-2) norms for two- and three-wheelers, along with the rollout of E20-compliant gasoline vehicles. While the auto sector has managed the transition smoothly, the new norms may have temporarily disrupted production and dispatch schedules.
Commenting on April-2025 performance, Rajesh Menon, Director General, SIAM said, “Passenger Vehicles segment posted its highest ever sales of April in 2025 of 3.49 Lakh units, with a growth of 3.9% as compared to April 2024. Three-Wheelers de-grew marginally by (-) 0.7% compared to April of previous year, with sales of 0.49 Lakh units. The Two-Wheeler segment de-grew by (-) 16.7% 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. 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.”
As India accelerates its push for cleaner, smarter mobility, the regulatory environment is set to shape market outcomes more profoundly. Automakers now face the dual challenge of aligning with environmental mandates while responding to evolving consumer demand.
With a promising start for passenger vehicles and cautious optimism around two-wheelers, the coming months will be pivotal in determining whether the market can balance regulatory adaptation with sustained growth across segments.
