New Delhi, Feb. 18 -- The Indian auto sector witnessed a mixed performance in Q3FY25, with domestic volumes growing at a modest 3% year-on-year (YoY), excluding tractors. While festive season discounts and new launches provided a temporary boost, profitability remained under pressure due to rising marketing expenses, forex volatility, and higher discounts.

Passenger vehicle (PV) sales led the growth at 4.5% YoY, primarily driven by an 11.5% YoY increase in SUV and van volumes. However, passenger car sales declined by 8% YoY, reflecting weaker demand for small cars.

The commercial vehicle (CV) segment struggled, with overall growth at just 1% YoY. While the bus segment supported medium and heavy commercial vehicles (MHCVs), the goods seg...