India’s car retail market ended FY2025 on a positive note, with encouraging sales in March 2025 and healthy year-on-year (YoY) growth for the full financial year. According to data shared by the Federation of Automobile Dealers Associations (FADA), key auto manufacturers including Maruti Suzuki, Mahindra, Tata Motors, Toyota, and Kia registered notable performances, while others faced mixed results. The data reflects ongoing consumer demand despite high interest rates, fuel price concerns, and macroeconomic pressures.
March 2025 Retail Sales: Maruti Leads, Toyota and Mahindra Surge
In March 2025, Maruti Suzuki retained its leadership in the Indian car market with 1,32,423 units, marking a 3.08% YoY growth from March 2024. Despite facing fierce competition, the brand’s dominance remains rooted in its wide network and trusted small car and SUV offerings.
Tata Motors secured second place with 48,462 units, recording a 4.20% increase over the previous year. Mahindra, however, showed one of the highest gains among major brands, growing 16.64% to retail 46,297 units, thanks to strong demand for its SUVs like Scorpio-N, XUV700, and Thar.
Hyundai faced a setback with a 4.55% decline, selling 42,511 units in March 2025, likely due to rising competition and a maturing product lineup. Toyota, on the other hand, witnessed a sharp rise of 18.22%, delivering 23,328 units, driven by strong Innova Hycross and Urban Cruiser Hyryder sales.
Kia India registered solid growth at 9.48%, retailing 21,997 units, largely due to consistent demand for the Seltos and Sonet.
Standout Performers and Underperformers
The Skoda-Volkswagen group emerged as a surprise performer in March with 9,064 units, reflecting a massive 54.36% growth, likely boosted by increased sales of the Skoda Slavia and Volkswagen Taigun. Similarly, MG Motor India sold 5,167 units, up by 36.22%, outpacing Honda Cars India, which managed only 4,928 units, a 24.02% decline.
Renault continued its downward trend, falling 29.16% to 2,633 units, and Nissan dropped 17.56% with just 1,756 units, reflecting the need for refreshed lineups.
In the luxury segment, Mercedes-Benz saw a minor decline of 4.64%, retailing 1,541 units, while BMW reported a 10.98% rise with 1,263 units.
JLR posted impressive growth of 46.45% with 495 units, showing demand in premium SUV space. BYD, the Chinese electric vehicle manufacturer, saw an extraordinary 175% growth, selling 396 units, signaling growing interest in EVs.
On the downside, Citroen dropped 40.68% with 331 units, Jeep declined 10.06% with 304 units, and Volvo slipped 9.82%, selling 147 units.
Collectively, “other brands” made a strong comeback, growing 80.15% with 6,707 units. Overall, India’s total car retail sales in March 2025 stood at 3,50,603 units, a healthy 6.26% increase over March 2024.
FY2025 Performance: Market Expands 4.87% YoY
For the full financial year FY2025, India’s car retail sales totaled 41,53,432 units, growing 4.87% from 39,60,602 units in FY2024. Leading the pack, Maruti Suzuki sold 16,71,559 units, up 3.95%, cementing its position as the undisputed market leader.
Hyundai maintained second place with 5,59,149 units, despite a 0.66% dip, showing the need for portfolio updates. Tata Motors retailed 5,35,960 units, also down 0.67%, but retained third place, bolstered by EV and SUV offerings.
Mahindra was the star performer in FY25 among mainstream brands, registering a robust 19.94% YoY growth with 5,12,626 units, propelled by aggressive SUV sales and improved rural reach.
Toyota showed one of the highest annual growths among top OEMs, jumping 28.71% to 2,75,665 units, backed by a refreshed lineup and hybrid appeal. Kia too performed well, growing 6.86% with 2,41,859 units.
Mixed Results for Other Players
While MG Motor posted 14.79% growth with 57,366 units, Honda Cars India dropped significantly by 18.81%, retailing 64,727 units, reflecting a weak model mix and reduced dealer sentiment.
Skoda-Volkswagen fell 5.14% with 84,222 units, while Renault declined 17.18% with 38,636 units. Nissan saw a 9.06% dip at 24,904 units, all suggesting a struggle among international players with aging portfolios or limited launches.
In the luxury space, Mercedes-Benz grew 12.53% with 17,715 units, and BMW grew 9.40% to 14,966 units. Force Motors climbed 14.66% to 8,668 units, and JLR grew a staggering 36.84%, retailing 5,237 units.
EV brand BYD posted 90.32% growth, reaching 3,401 units, while Citroen, Jeep, and Volvo all saw double-digit declines of 25.17%, 28.85%, and 22.52%, respectively. Collectively, “other brands” declined by 19.68%, underlining the difficulty smaller or newer players face in sustaining volumes.
Final Takeaway
FY2025 highlighted two key trends: the continued dominance of legacy brands like Maruti, Hyundai, and Tata, and the rising power of utility-focused manufacturers like Mahindra and Toyota. Newer brands and premium players saw a mixed bag of results, with EV players like BYD showing momentum, while others faced challenges.
March 2025’s strong finish and an overall FY25 growth of nearly 5% show that India’s car retail sector remains resilient, driven by rural demand, growing SUV preference, and a slow but steady EV shift. With new launches expected in the coming months and price-sensitive consumers returning, FY2026 could see even stronger performance ahead.