Congress claims most Indians locked out of consumption economy; cites auto sales figures

Congress highlights drop in passenger car sales, pointing to growing inequality, stagnant incomes, and weak investment in Indian economy.

Flagging a reported drop in the share of passenger cars in the overall auto sales, the Congress on Wednesday (May 28, 2025) claimed that it points to a state of the economy where most Indians are locked out of the consumption economy, there is growing inequality, stagnant incomes and weak investment.

Congress General Secretary in-Charge Communications Jairam Ramesh shared a media report which claimed that while the middle class is increasingly unable to transition from two-wheelers to entry-level cars, the sport utility vehicle (SUV) segment is recording a rising share of first-time buyers.

There was no immediate response from the government or the Bharatiya Janata Party (BJP) on the claims.

"India INC [Indian National Congress] is raising the siren once again — this time for auto sales. In 2018-19, passenger cars made up 65% of total sales of vehicles; that share is now only 31%. SUVs and multi-purpose vehicles now account for 65% of sales," Mr. Ramesh said in a post on X.

Noting that car sales have long been considered an indicator of the economy’s health, Mr. Ramesh said, “the last few years have seen a ‘decoupling’ of the two with medium GDP growth been accompanied by concerningly low growth in car sales.”

"Buyers are increasingly turning towards the used car market. Auto manufacturers are now producing with an eye on export markets rather than domestic markets," he claimed on X.

"What does this say about the state of the economy? Most Indians are locked out of the consumption economy — about 88% of Indian households earn less than ₹12 lakh annually," Mr. Ramesh said.