Festivals hold promise but PV sales may stay flat in FY25

Demand for SUVs may grow in mid-high teens; CNG vehicles in demand too

- SOHINI DAS

Passenger vehicle (PV) sales, which have been on a slower growth trajectory so far this financial year (FY25), are likely to end FY25 on a flat note, feel industry insiders.

While original equipment manufacturers (OEMs) are upbeat on the upcoming festival season sales, analysts peg the overall growth in PV sales for FY25 at a flat 0.8 per cent.

Shailesh Chandra, managing director (MD), Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said he expects the year to end with a 2-3 per cent overall growth in PV retail sales over the 4.2 million units (highest ever) last year.

Chandra said the second half of the year would see growth led by the festival season.

So far, there is no significant change in any of the macroeconomic factors that affect auto sales be it GDP growth projection, interest rates or inflation. "Rural demand is back riding on good monsoon sentiments. Enquiry levels at dealerships are also stable," he added.

Chandra said that realistically, a 2-3 per cent year-on-year (Y-o-Y) growth over last year's 4.2 million units is possible in 2024-25.