Market Highlights
SIAM reported a stable overall auto sector performance in May 2025. Two-wheelers and passenger cars witnessed steady growth, while three-wheeler demand slowed—suggesting diverging trends across segments economictimes.indiatimes.comen.wikipedia.org+1auto.economictimes.indiatimes.com+1timesofindia.indiatimes.com.

Two-Wheeler Resurgence
Momentum driven by rural demand, farm incomes, and last-mile delivery. Rising fuel costs nudged consumers toward efficient utility bikes. New model launches from Bajaj and Hero contributed.

Passenger Vehicles Holding Steady
Strong SUV and compact sedan demand—helped by ongoing model refreshes and EMIs. Rural stabilization and steady urban replacement cycles supported this trend.

Three‑Wheeler Dip
Electric and ICE Rickshaws suffered amid inventory reassessment and driver uncertainty. Regulatory tailwinds (like FAME II) haven’t triggered immediate confidence yet.

Regional & Economic Context
There are supply variances across states—north saw stronger sales vs south influenced by monsoons. Macroeconomic signals and geopolitical stability also influenced consumer sentiment.

OEM & Dealer Response
Discounting and flexible financing options emerged—Honda offered cashbacks; Yamaha pushed festive offers. Dealers worked to manage inventory ahead of upcoming launches in festive season.

Future Outlook
Two-wheeler strength likely through June–July ahead of monsoon, while PV demand may peak in festival season. Three-wheeler recovery depends on financing clarity and inventory offload.