The Indian automobile industry showed resilient wholesale numbers, with the latest data from the Society of Indian Automobile Manufacturers (SIAM) revealing the highest-ever passenger vehicles sales for the month of February. This contrasts the Federatio of Automobile Dealers Association (FADA)'s warning, a week ago, of a significant deceleration in retail sales during the month. FADA warned of inventory buildup at dealers yards.
According to SIAM data, total wholesale production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles reached 23,46,258 units in February 2025. Passenger vehicle sales grew by 1.9 per cent compared to February 2024, reaching 3,77,689 units, marking the highest February sales ever for this segment in terms of factory dispatches to dealerships.
However, retail sales data reported by FADA, showed a decline in actual registrations across most segments in February. This discrepancy highlights the widening gap between wholesale figures (reported by SIAM) and retail numbers (tracked by FADA), as manufacturers continue dispatching vehicles to dealers despite slower consumer offtake, says Autocar Professional.
Three-wheeler wholesale sales showed positive movement, increasing by 4.7 per cent to 57,788 units compared to the same month last year. Within this category, passenger carriers and goods carriers grew by 6.8 per cent and 5.9 per cent respectively, though electric rickshaws and carts witnessed sharp declines of 50.9 per cent and 30.6 per cent.
The two-wheeler segment, which forms the bulk of India's automobile market, experienced a 9 per cent decline year-on-year in wholesale dispatches, with sales dropping to 13,84,605 units. Motorcycles were evern worse with a 13.1 per cent drop, while scooters remained relatively stable with just a 0.5 per cent decrease. Mopeds continued their downward trend with an 18.2 per cent decline.
"Passenger Vehicles segment remained resilient and posted its highest ever sales of February in 2025," said Rajesh Menon, Director General of SIAM. He expressed optimism about the industry's near-term prospects, noting that "upcoming festivities of Holi and Ugadi in March is likely to continue to drive demand, thereby closing FY 2024-25 on a reasonably positive note."
FADA's data suggest that dealers are facing serious inventory pressures, particularly in the two-wheeler and passenger vehicle segments, with stocks reaching concerning levels in some regions. This inventory buildup indicates manufacturers are pushing wholesale numbers to meet year-end targets despite slower retail demand. The mixed performance reflects shifting consumer preferences and economic conditions in India's automotive market.
The growth in passenger vehicle wholesale dispatches may be due to new model launches, year-end sales targets, and the increasing preference for personal mobility post-pandemic. The decline in electric rickshaws, despite the government's push for electrification, suggests challenges in the electric vehicle adoption curve at the mass market level, mentions Autocar.
The data excludes figures from luxury carmakers BMW, Mercedes, JLR, and Volvo Auto.