In the passenger vehicle segment, sales crossed one million units in Q1 FY25 for the first time.

According to SIAM, sales rose 3 percent compared with the same period last year and reached a total of 1,026,006 units.

This growth was mainly driven by utility vehicles, which saw an increase of 18 percent, and even vans saw a growth of 9.2 percent.

The two-wheeler segment also saw substantial growth, with sales rising 20.4 percent to nearly five million units.

Scooters led the way with an impressive growth of 28.2 percent, while motorcycles and mopeds also recorded significant growth.

The three-wheeler segment witnessed a growth of 14.2 per cent, reaching 165,081 units, the highest for the first quarter, driven by both passenger carriers and freight carriers.

Citing the positive monsoon forecast and festive season as potential growth drivers, SIAM Chairman Vinod Aggarwal said, "The automotive sector shows resilience and adaptability, and is looking forward to its upward trend, benefiting from both improving domestic demand and favorable export conditions. Ready to move forward."

Commercial vehicle sales also witnessed positive momentum with a growth of 3.5 per cent to total 224,209 units.

In June, the Indian auto industry produced 2,336,255 units of passenger vehicles.

When it comes to exports, passenger vehicle exports grew significantly by 18.6 per cent in the April-June period, with utility vehicles contributing 40.2 per cent.

"Exports of M&HCV and LCV grew by 11.3 per cent and 6.3 per cent respectively," the report said.