FADA Reports Modest 2.95% Growth in India’s Auto Retail Sales for April 2025

The Federation of Automotive Dealers Associations (FADA) reported a 2.95% year-on-year rise in India’s overall automobile retail sales for April 2025, with total sales reaching 22,87,952 units. This modest growth was largely driven by seasonal buying during key festivals such as Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi, and Vishu, which provided a lift to consumer sentiment and dealership footfall in the latter part of the month.

Segment-Wise Performance: Growth in Most, Dip in CVs

Most vehicle categories posted positive growth during the month. 2-wheeler sales rose by 2.25%, with 16,86,774 units sold, compared to 16,49,591 units in April last year. This segment benefited from increased demand in rural areas following the harvest season and upcoming wedding celebrations.

Passenger vehicles (PVs) also registered a modest increase, growing by 1.55% to reach 3,49,939 units, up from 3,44,594 units in the same period last year. This growth, although limited, reflects continued buyer interest in personal mobility options amid new launches and shifting preferences.

Meanwhile, three-wheelers and tractors posted higher growth rates of 24.5% and 7.5%, respectively, indicating a revival in demand for intra-city transport and rural farming needs.

On the other hand, commercial vehicles (CVs) remained a drag on the overall numbers, slipping by 1%. FADA attributed this dip to a high base effect, softness in e-commerce-led demand, and increased competition from electric three-wheelers, particularly in urban logistics.

Read More: March 2025 Auto Sales Data Out: Tata Motors, Maruti Suzuki, M&M and More in Focus

FADA’s May Outlook: A Mixed Bag

Looking ahead, FADA noted a nuanced outlook for May 2025, shaped by both opportunities and challenges across segments.

In the passenger vehicle space, retail momentum is expected to remain steady but subdued, as buyers hold off in anticipation of new model roll-outs. Additionally, elevated financing costs are likely to impact affordability and sentiment, particularly among mid-level urban buyers.

In the 2-wheeler segment, seasonal factors like marriage-related buying and post-harvest liquidity in rural areas are expected to sustain enquiries. However, FADA cautioned that credit availability has become more stringent, with financiers demanding higher CIBIL scores and larger down payments, even as banking liquidity remains stable.

Further, intense summer heat and ongoing school holidays could reduce showroom visits, although the Indian Meteorological Department’s forecast suggests the heat may be less severe than last year.

For commercial vehicles, the outlook remains flat due to persistent demand headwinds. While slower growth in e-commerce logistics and competition from electric three-wheelers weigh on the segment, FADA noted that OEM incentives and upcoming infrastructure projects may offer limited support to volumes.

Conclusion

April 2025 turned out to be a steady month for India’s auto retail sector, thanks to festive demand and moderate growth across most segments. While the consumer mood remains cautiously optimistic, several factors—ranging from financing hurdles to seasonal disruptions—continue to shape buying patterns. As FADA’s update suggests, the industry will likely navigate a complex mix of opportunities and constraints in the months ahead.

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