India’s automobile retail market showed mixed results in April 2025, as per data released by the Federation of Automobile Dealers Associations (FADA). While the overall industry recorded a 27 per cent year-on-year (YoY) increase in sales, the figures were flattered by an extra billing day due to a shift in the fiscal calendar. Passenger vehicles (PV) remained largely resilient, with a 1.3 per cent YoY growth. April sales stood at 3,20,263 units, up from 3,15,306 in April 2024. While newly launched models and the SUV sub-segment continued to draw consumers, the broader market was characterized by high inventory levels—reportedly 50 to 55 days’ worth—and aggressive discounting. Retailers noted that political uncertainty ahead of the general elections added to the cautious sentiment among potential buyers.
The two-wheeler (2W) segment, which accounts for the majority of vehicle sales in India, posted a slight decline of 0.3 per cent YoY. Sales fell to 13,10,186 units in April 2025, down from 13,14,769 in the same month last year. Dealers attributed the downturn to intense heatwaves, limited auspicious wedding dates, and sluggish rural demand. Delays in harvest payments and negative market sentiment in semi-urban and rural areas also contributed to the dip. Electric two-wheeler sales, while up 50 per cent YoY, saw a sharp 56 per cent decline compared to March, following the withdrawal of broader subsidies under the FAME scheme. The new, narrower EMPS framework offered limited support, further dampening momentum.
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The commercial vehicle (CV) segment saw a moderate improvement, growing by 2.5% YoY. Sales reached 82,224 units in April, compared to 80,645 in the same period last year. This growth was underpinned by continued investment in infrastructure, stable freight demand, and targeted government policies in logistics and transport. However, large fleet buyers reportedly held off on new purchases amid concerns related to the electoral climate and cost management.
Tractor sales witnessed the steepest YoY drop among major categories, falling 10.7% to 55,195 units from 61,063 in April 2024. The decline reflects strained rural liquidity, late crop settlements, and limited agricultural spending. Dealers reported lower farmer footfall and postponed purchasing decisions. Even with the India Meteorological Department forecasting a normal monsoon, uncertainty remains high in the rural sector, exacerbating pressure on the segment.
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On the other hand, the three-wheeler (3W) market continued its positive trajectory with a 7% YoY increase, rising to 81,029 units from 75,581 in the previous year. The growth was driven by rising demand for shared and last-mile mobility solutions, particularly in urban and peri-urban areas. The electric variant of three-wheelers also saw increased adoption, supported by commercial fleet operators and ride-share aggregators.
C S Vigneshwar, President, FADA said, “The new financial year began on a modest note as overall retails in April managed to grow by 3% YoY. All categories except CV closed in the green, with 2W, 3W, PV and Trac up 2.25%, 24.5%, 1.5% and 7.5% respectively, while CVs declined by 1%. With the tariff war paused, stock markets staged a sharp pullback—alleviating investor concerns—and customers thus leveraged Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi and Vishu to complete purchases, helping April end on a positive note.”
