05-05-2025
Auto retail sales rise 3% in April led by 2Ws, tractors
Overall auto retail sales for April 2025 grew 3% Year on Year (YoY) led by growth in retail sales of three wheelers (3W) and tractors.
As per data provided by The Federation of Automobile Dealers Associations (FADA) Two Wheeler (2W) sales grew by 2.25%, 3W by 24.5%, Passenger Vechicles (PV) by 1.55%, tractors by 7.5% and Commercial Vehicle sales fell 1% YoY,
FADA said the PV inventory is at 50 days and has advocated for a 21-days stock norm.
Two wheelers grew 2.25% backed by strong rural demand while PV sales grew due to offer of deep discounts by OEMs. Price hike by OEMs and flat freight rates led by CV sales dropping by 1.05%, FADA said.
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 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,' he said.
On the immediate outlook the FADA President said 'May's agricultural cycle is concluding on a strong note, underpinned by healthy crop prices and robust mandi procurement.'
'The IMD's forecast of an above-normal southwest monsoon bodes well for rural incomes, farm-sector growth and downstream demand, while a well-distributed rainy season is critical to containing food inflation,' he said.
'At the same time, Kantar's Rural Barometer and GroupM data signal heightened consumer selectivity in rural India—household spending has outpaced income growth, and inflationary pressures are tempering discretionary purchases,' he added.
