Domestic PV wholesales to grow 3-5% in FY25: SIAM

New Delhi: Domestic passenger vehicle wholesales are expected to grow by 3-5 per cent this fiscal with the industry pinning hopes on strong performance in the festive period after witnessing a flattish first half, automobile industry body SIAM said on Monday.

At the start of the current fiscal, the Society of Indian Automobile Manufacturers (SIAM) had pegged the passenger vehicle (PV) sales to grow between 5-8 per cent this fiscal.

For the April-September period this fiscal, PV sales stood at 20,81,143 units, registering a marginal growth from 20,70,960 units in the same period of 2023-24.

In a press briefing here, SIAM President Shailesh Chandra said the industry was expecting to post growth in the April-September period.

“It was a slight surprise, especially the month of May and June, which did not play out as per our expectations. I would say April was still good... and then we saw moderation in May and June which affected us badly.”

Sales went up in September but were offset by the Shradh period and that is why the industry expects a sub-5 per cent growth in FY25, he added.

“Second half (H2) of the year has a big burden now and hopefully the festive period should be able to deliver on the growth expectations,” Chandra said.

He noted that in the first 12 days of October, there has been a 25 per cent increase in retail sales, as compared to previous month, signalling robust offtake in the festive period. Citing the impact of high base effect, Chandra said PV sales jumped from 2.6 million units in FY20 to 4.2 million units last fiscal.