February 2025 Auto Sales Drop, Passenger Cars Down 10%

The Indian automobile sector witnessed a slowdown in February 2025, with retail auto sales declining by 7.19% year-on-year (YoY). According to the Federation of Automobile Dealers Associations (FADA), total vehicle sales dropped to 18,99,196 units compared to February 2024. The most significant decline was observed in the passenger vehicle (PV) segment, where sales fell by 10.34%, indicating a tough period for car manufacturers.

Key Reasons Behind the Sales Decline

Industry experts believe factors like inflation, economic uncertainty, and weak consumer sentiment contributed to the decline. The auto sector will now be focusing on potential recovery in the upcoming months.

Category-Wise Auto Sales Performance (YoY Change)

1. Total Vehicle Retail Sales: 7.19% decline, reaching 18.99 lakh units

2. Two-Wheeler Sales: 6.33% decline, with 13,53,280 units sold

3. Three-Wheeler Sales: 1.92% decline, totaling 94,181 units

4. Passenger Vehicles (PV): 10.34% decline, with sales dropping to 3,03,398 units

5. Commercial Vehicles (CV): 8.6% decline, with 82,763 units sold

Comparison With January 2025

The slowdown in February comes after a strong January 2025, when total auto sales had increased by 7% YoY, reaching 22,91,621 units. In contrast, February saw a sharp decline, impacting most segments except for a few automakers who managed to post positive growth.

Company-Wise Sales Performance in February 2025

Mahindra & Mahindra

Mahindra saw a 19% YoY growth, selling 50,420 SUVs in February 2025, up from 42,401 units a year ago. Although there was a 0.4% MoM dip, Mahindra maintained strong sales momentum with its SUV lineup leading the charge.

Hyundai Motor India

Hyundai India recorded 58,727 unit sales in February 2025, marking a 2.93% YoY decline. The domestic market sales fell by 4.93%, whereas exports grew by 6.8% to 11,000 units. On a month-on-month (MoM) basis, Hyundai’s sales dropped 11.62% from January 2025.

Maruti Suzuki India

Maruti Suzuki’s total sales stood at 1,99,400 units, showing a marginal increase from 1,97,471 units in February 2024. Domestic sales reached 1,74,379 units, while exports contributed 25,021 units. The company saw a slight decline in light commercial vehicle (LCV) sales but continued to witness growth in utility vehicles.

Tata Motors

Tata Motors’ sales declined by 8.79% YoY, dropping to 46,811 units from 51,321 units in February 2024. EV sales suffered a 22.82% drop, but exports surged by 596.30%, offering some relief. Compared to January 2025, sales fell 3.41% MoM.

Kia India

Kia India registered 25,026 unit sales, posting an impressive 23.89% YoY growth over the 20,200 units sold in February 2024. Kia’s lineup, including the Sonet, Seltos, Carens, and Carnival, contributed significantly to its sales performance.

Toyota Kirloskar Motor

Toyota recorded a 13% YoY growth, selling 28,414 units in February 2025, up from 25,220 units a year earlier. Domestic sales increased by 13.36%, while exports rose 4.17%. For the April 2024 – February 2025 period, Toyota’s cumulative sales stood at 3,06,105 units, a 30% jump from the previous year, driven by strong demand for its utility vehicle lineup, including the Innova Crysta, Innova Hycross, Fortuner, Legender, Hilux, and Rumion.

Conclusion: Mixed Fortunes for Automakers

While the overall market faced a slowdown, some automakers like Mahindra, Kia, and Toyota managed to post growth. Others, like Hyundai, Tata Motors, and Maruti Suzuki, saw varying levels of decline. The coming months will be crucial for the industry, as automakers look for signs of market recovery and shifts in consumer demand.