The demand for bigger and more potent vehicles is transforming the dynamics of the automotive industry. The Indian auto parts sector is experiencing remarkable expansion in the initial half of FY25. As reported by the Automotive Component Manufacturers Association (ACMA), the market size increased by 11.3 percent, hitting $39.6 billion. This rise from $36.1 billion in H1 FY24 underscores a notable change in consumer tastes and market trends.

A significant trend is the increasing demand for Utility Vehicles (UVs) in the Passenger Vehicle (PV) category. Sales of UVs increased by 13 percent, with UV1 models—ranging from 4000 to 4400 mm in length and costing under Rs 20 lakh—seeing an impressive 25 percent rise in sales. This change reflects a consumer inclination towards roomy and adaptable vehicles that serve both family and personal requirements.

Furthermore, the motorcycle market is also flourishing. Sales of motorcycles with engine capacities ranging from 350cc to 500cc have soared by an astonishing 74 percent. This increase indicates a wider trend in which consumers are choosing more powerful motorcycles, probably because of escalating fuel costs and the demand for effective commuting solutions. The overall performance of the passenger car sector clearly demonstrates the industry's resilience and ability to adapt in a fluctuating market.

Electric vehicles (EVs) are gaining more popularity among buyers. In the first half of FY25, electric vehicle sales increased by 22 percent compared to the previous year. Electric two-wheelers (e-2W) drove this expansion with a 26 percent rise in sales.