1 week Ago
India’s vehicle retail sales dropped slightly in March 2025 compared to March 2024. The Federation of Automobile Dealers Associations (FADA) said sales fell by 0.7%.
However, sales rose 12% from February 2025. For the full year, FY25, which runs from April 2024 to March 2025, sales grew by 6.46%.
Rural areas performed better than cities. In March, some vehicle types did well while others struggled. Passenger vehicles, like cars, increased by 6% compared to March 2024.
Discounts and new models boosted their sales. Commercial vehicles, like trucks, went up by 2.6%.
Festivals and projects helped them grow. Two-wheelers dropped by 1.7%.
Festivals gave a small lift, but price hikes hurt sales. Three-wheelers fell by 5.6%.
Rural sales were especially weak. Tractors decreased by 5.7%.
Demand for them stayed low. Sales in March started slowly because of a period called Kharmas, when fewer people buy vehicles. They improved in the last week.
Festivals like Navratri, Gudi Padwa, and Eid, along with year-end discounts, drove the increase. For the full year, FY25, different vehicle types had mixed results. Passenger vehicles grew by 4.
87%. This was close to FADA’s prediction of 5% growth. Two-wheelers increased by 7.
71%. This was below the hoped-for growth of 10% or more. Commercial vehicles stayed nearly flat, dropping by 0.
17%. Weather and financing problems slowed them down. Rural areas outdid cities in FY25.
Two-wheelers grew by 8.39% in rural markets and 6.77% in cities.
Three-wheelers rose by 8.70% in rural areas but only 0.28% in urban ones.
Passenger vehicles climbed by 7.93% in rural regions and 3.07% in cities.
Dealers faced some challenges. Car stock levels were high, at 50–55 days. This means extra costs for them.
They also worried about tough sales targets and tight lending conditions. FADA President CS Vigneshwar said March began weakly due to Kharmas. The last week was strong thanks to festivals and discounts.
He noted that passenger vehicle growth for FY25 nearly hit its 5% target. Two-wheelers grew less than expected, while commercial vehicles stayed flat because of weather and financial issues. Looking ahead, dealers are uncertain about April.
About 46% think sales will stay flat. Around 39% expect growth. Roughly 15% predict a drop.
Heatwaves might keep people away from showrooms. Festivals like Akshay Tritiya and the marriage season could lift sales. Global trade issues might affect spending.
For FY26, FADA has predictions. They expect two-wheeler sales to grow by 5–9%. Passenger and commercial vehicles might rise by 1–4%.
New models and higher rural incomes could help. However, tight financing and global trade problems are concerns. Dealers want lower borrowing costs to increase sales.
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