The Federation of Automobile Dealers Associations (FADA) has released its April 2025 Vehicle Retail Data, registering a 3% year-on-year (YoY) growth in overall vehicle retail across the country. Except for Commercial Vehicles (CV), all other categories saw positive growth as the new financial year opened on a cautious but steady note.
As per the report, retail performance in April reflected the benefits of festive demand and seasonal tailwinds. Two-wheelers posted a 2.25% YoY rise with a sharp 11.84% month-on-month (MoM) jump, while three-wheelers saw a stellar 24.5% YoY increase. Passenger vehicles (PV) were up by 1.55% YoY, though slightly down 0.19% MoM. Tractors registered 7.5% growth YoY, supported by a strong Rabi harvest. On the downside, the CV segment declined by 1.05% YoY and 4.44% MoM, reflecting the impact of stagnant freight rates and OEM price hikes.
Passenger vehicle sales grew modestly despite limited new model launches. Discounts and sustained SUV demand helped maintain volumes, though a MoM dip indicates that sentiment remains fragile. Entry-level car sales were subdued, reflecting caution among budget-conscious buyers. High inventory levels, currently around 50 days, are prompting FADA to again stress the need for leaner stocking practices to reduce financial strain on dealerships and enhance market responsiveness.
However, the CV segment struggled in April, dragged down by weak small commercial vehicle (SCV) demand and lackluster freight activity. Advance purchases made in March led to carryover inventory, while holidays further disrupted sales momentum. OEM price hikes, without a corresponding increase in freight rates, hurt conversion rates.
On a brighter note, the bus segment remained stable, supported by school transportation and staff mobility requirements. Financing availability is steady, but FADA emphasized the need for enhanced support to first-time buyers to revive momentum in the segment.
According to FADA’s online dealer survey, sentiment and liquidity are largely neutral. Around 52% of dealers rated liquidity as neutral with 23.83% rating it good and 23.83% bad. On market sentiment, 55% expressed a neutral outlook, with the remainder split between good (23.83%) and bad (21.09%). Expectations for May retail are mixed as 48.44% expect flat sales, 37.5% foresee growth and 14.06% anticipate a decline.