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Time of India
a day ago
- Automotive
- Time of India
India's auto retail slips 4.3%: Passenger vehicles, two-wheelers' sales decline in July; tractor segment bucks trend with 11% growth
AI-image Retail sales of vehicles across categories in India declined 4.31 per cent year-on-year to 1.96 million units in July, reflecting weak consumer sentiment on a high base. While tractor sales posted strong double-digit growth, passenger vehicles and two-wheelers saw declines, and commercial vehicle sales remained largely flat. Robust rainfall and substantial crop sowing boosted tractor demand, according to registration data from the VAHAN portal compiled by the Federation of Automobile Dealers' Associations (FADA), cited by Economic Times. Two-wheeler registrations fell 6.5 per cent to 1.36 million units, passenger vehicle sales slipped 1 per cent to 328,613 units, and commercial vehicle registrations held steady at 76,439 units. Three-wheeler sales inched up 0.8 per cent to 111,426 units. Tractor sales rose 11 per cent to 88,722 units. 'After three consecutive months of growth, India's auto retail sector applied the brakes in July, with overall retails declining by 4.31% YoY,' said C S Vigneshwar, president, FADA. 'This pullback largely stems from a high-base effect in July 2024, when an extreme heat wave was immediately followed by excessive rainfall, constraining volumes before a rebound later that month. ' The two-wheeler segment saw reduced rural footfall due to crop-sowing activities and sustained heavy rainfall. Dealers expect sales to pick up post-monsoon, with many purchases postponed to August ahead of the festive period, Vigneshwar added. In the passenger vehicle segment, rural markets outperformed urban ones, with dealer inventory at 55 days. Maruti Suzuki retained its lead, while Hyundai Motor India overtook Mahindra & Mahindra for the No. 2 spot, selling 43,009 units versus M&M's 42,207 units. Commercial vehicle sales posted a marginal 0.2 per cent increase, aided by new product launches, marketing campaigns, institutional orders, and adequate stock availability. 'Rural haulage demand, however, remained fragmented amid heavy rainfall, seasonal softness in cement, coal and construction logistics, and slower financier disbursements, prompting many buyers to defer purchases to the post-monsoon period,' said Vigneshwar. The tractor segment's growth was supported by timely and enhanced farm subsidies alongside favourable monsoon conditions. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
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Business Standard
3 days ago
- Automotive
- Business Standard
Trump tariff, IT job cuts, heavy rains dampen auto sales in July; down 4.3%
Uncertainty over US tariffs, possible impacts on the manufacturing sector, job cuts in the IT sector, and prolonged heavy rains collectively dampened automobile retail sales in India in July, which declined by 4.3 per cent compared to the same month last year. Two-wheeler sales contracted by 6.5 per cent, while passenger vehicle sales fell by nearly 1 per cent, according to data shared by the Federation of Automobile Dealers Associations (Fada). The industry body noted that job concerns in the manufacturing sector—linked to higher tariffs imposed on India by the Donald Trump administration—along with IT sector layoffs, may have negatively influenced consumer sentiment during the month. 'It should have affected in July, and may hit going ahead. We really don't know how much Donald Trump tariffs are going to affect the industry in terms of sentiments,' said C S Vigneshwar, president of Fada. Total auto retail sales stood at 1.96 million in July 2025, compared to 2.05 million in July 2024. The contraction in overall retail sales follows three consecutive months of growth. 'India's auto retail sector applied the brakes in July, with overall retails declining by 4.31 per cent year-on-year. This pullback largely stems from a high-base effect in July 2024, when an extreme heatwave was immediately followed by excessive rainfall, constraining volumes before a rebound later that month,' Vigneshwar added. During the month, construction equipment witnessed a 33.3 per cent degrowth, owing to strong growth in the past two months caused by a shift in emission norms. 'A lot of the customers pre-purchased in this segment due to new emission norms. This will settle going forward,' he said. On the other hand, three-wheelers, tractors, and commercial vehicles posted year-on-year growth of 0.83 per cent, 10.96 per cent, and 0.23 per cent, respectively. In the two-wheeler segment, July saw a 6.48 per cent year-on-year decline to 1.36 million, as crop-sowing activities and prolonged heavy rains dampened rural footfalls more sharply than urban demand. 'Dealers are confident of a post-monsoon uptick, with several purchase decisions deferred to August ahead of the festive season—making strategic stock alignment and focused rural–urban engagement imperative for reviving momentum,' he added. The passenger vehicles segment contracted by 0.81 per cent year-on-year, despite a 10.38 per cent surge in volumes on a monthly basis, driven by robust rural demand. The Aashaada period and auspicious delivery days, combined with targeted schemes, new model introductions, and aggressive rural marketing, boosted hinterland sales toward month-end. 'Urban demand, however, remained muted due to low enquiry and restrained customer sentiment. With inventory levels steady at around 55 days, calibrated discounting, streamlined finance facilitation, and intensified urban outreach will be crucial for sustaining festive-season growth,' Vigneshwar said. Commercial vehicles posted a modest 0.23 per cent year-on-year increase, led by urban momentum. Dealers cited new model launches, aggressive marketing support, bulk institutional orders, and timely stock availability as key drivers, alongside targeted schemes that bolstered school-bus volumes. In contrast, rural haulage demand remained fragmented amid heavy rainfall, seasonal softness in cement, coal, and construction logistics, and slower financier disbursements, prompting many buyers to defer purchases to the post-monsoon period. The tractor segment delivered a strong performance, with volumes up 10.96 per cent. 'The timely release of enhanced agricultural subsidies and favourable monsoon rains—together with strengthened rural liquidity—spurred a marked increase in purchase intent. This resilience underscores the pivotal role of policy interventions in sustaining agri-rural demand,' he said.
News18
3 days ago
- Automotive
- News18
Auto retail sales down in July 2025; FADA cites high base effect
New Delhi [India], August 7 (ANI): India's auto retail sector witnessed a notable slowdown in July 2025, with total vehicle registrations declining by 4.31 per cent year-on-year, according to data released by the Federation of Automobile Dealers Associations (FADA) on attributing the drop primarily to a high base effect from July 2024, along with weather-related challenges that impacted consumer sentiment and rural the monthly vehicle retail data, FADA President C S Vigneshwar noted, 'July's downturn is largely due to an unusual base from last year, where sales had recovered late in the month following extreme heat and subsequent heavy rainfall."Among segments, Two-Wheelers (2W) were the worst hit, reporting a 6.48 per cent decline year-on-year and a 6.28 per cent dip month-on-month. The association noted that continued heavy rains and crop-sowing activities reduced rural footfalls, leading to deferred Vehicles (PV) also saw a year-on-year contraction of 0.81 per cent despite a 10.38 per cent month-on-month growth. Inventory in the PV segment stood at an elevated 55 the commercial front, the Commercial Vehicle (CV) segment recorded marginal year-on-year growth of 0.23 per cent and a 4.19 per cent increase tractors emerged as the best-performing category in July, with a sharp 10.96 per cent increase year-on-year and 14.9 per cent sequential ahead, FADA expects sales momentum to improve in August, driven by multiple festivals such as Rakhi, Janmashtami, Independence Day, and Ganesh Chaturthi, along with continued monsoon benefits. According to a survey, 59 per cent of dealers foresee growth in August, while only 9 per cent anticipate a FADA flagged risks from the recent imposition of a 25 per cent US tariff on Indian exports, rupee depreciation, and resulting import-cost pressures, which could weigh on consumer confidence and dampen discretionary spending.'The industry enters August with guarded optimism," Vigneshwar added. 'While tailwinds from the monsoon and festive season are expected to boost demand, export-tariff volatility and isolated weather disruptions require careful monitoring."Despite July's blip, cumulative retail sales for April-July FY26 rose 2.79 per cent year-on-year to 85.24 lakh units. The 3W and PV segments posted growth of 8.62 per cent and 2.46 per cent respectively, while tractor sales rose 7.67 per cent in the same period. (ANI)
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Business Standard
08-07-2025
- Automotive
- Business Standard
EV sales rise 28.6% in June; electric PVs, CVs lead growth: Fada
India's electric vehicle (EV) market registered a 28.60 per cent year-on-year increase in total sales in June 2025, according to data shared by the Federation of Automobile Dealers' Associations (Fada). Fada President CS Vigneshwar credited the growth to government schemes, especially the PM e-Drive Scheme, and increased investments in domestic EV innovation. 'The rise in EV penetration across segments is a clear sign that India is embracing clean mobility,' he told news agency PTI. 'Electric three-wheelers now make up over 60 per cent of the segment sales, and electric cars and commercial vehicles are gaining ground.' Vigneshwar added that the expansion of charging infrastructure is also helping build consumer confidence, aligning India's EV ecosystem with the country's climate and energy security goals. e-PVs nearly double, two-wheelers sales up A total of 180,238 EV units were sold during the month, driven by sharp gains in electric passenger vehicles (e-PVs) and continued momentum across two-, three-, and commercial vehicle segments. The electric passenger vehicle segment nearly doubled, with sales rising 79.95 per cent to 13,178 units, compared to 7,323 units in June 2024, Fada data showed. The segment now accounts for 4.4 per cent of total EV sales, up from 2.5 per cent last year, indicating growing consumer trust in electric mobility for personal transport. Electric two-wheeler sales rose 31.69 per cent year-on-year to 1,05,355 units, up from 80,003 units in June 2024. Their share in overall two-wheeler sales also grew to 7.3 per cent, compared to 5.8 per cent a year ago. "Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals,' Vigneshwar commented on June's Fada sales report released on Monday. Three-wheelers hold largest market share Electric three-wheelers retained their lead in EV market share, with 60,559 units sold, marking a 15.79 per cent year-on-year increase. Their share of total EV sales grew to 60.2 per cent, up from 55.4 per cent in June 2024, as their role in last-mile connectivity and urban logistics grows. Meanwhile, the electric commercial vehicle segment, while still small, recorded the highest growth rate, with sales rising 122.5 per cent to 1,146 units, up from 515 units in June 2024. Overall, automobile retail sales in June 2025 crossed two million units, marking a 5 per cent year-over-year increase from 1.91 million units sold in June 2024.
Time of India
07-07-2025
- Automotive
- Time of India
Fine rainy spell & capex push help lift vehicle sales in June
New Delhi: Vehicle registrations, a proxy for retail sales, increased by 4.8% to more than 2 million units in June with plentiful monsoon rains, and higher government spending helping support demand for two-wheelers, tractors, and construction equipment. Retail sales of passenger vehicles grew 2.4% last month to 297,722 units, and commercial vehicles reported a 6.6% rise to 73,367 units, showed data collated by lobby group Federation of Automobile Dealers Associations (FADA) from the Vahan portal of the ministry of road, transport & highways (MoRTH). Two-wheeler sales rose by 4.7% to over 1.44 million units last month, while three-wheelers, tractors, and construction equipment recorded increases of 6.7% (100,625 units), 8.7% (77,214 units) and 55% (8,558 units), respectively. FADA president CS Vigneshwar termed auto retails in June as "healthy". As per initial industry estimates, carmakers dispatched fewer vehicles last month-about 320,000 units compared to the year-ago period-to align stocks in the channel. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like She Was The Dream Girl In The 80s, This Is Her Recently Learn More Undo In the two-wheeler segment, while festival and marriage-season demand provided a boost to sales, financing constraints and intermittent variant shortages dampened overall volumes. Early onset of monsoons and rising EV penetration also shaped buying patterns. Live Events Distributors are cautiously optimistic of the momentum picking up in the coming festive period, amid prevailing geopolitical challenges. "Several dealers cited compulsory billing and forced stock lifts-often via auto-debit wholesales-leading to mandated high days of inventory aligned with festival-season targets," said Vigneshwar. "Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals." In the passenger vehicle segment too, heavy rains and tight market liquidity weighed on customer footfalls and sales conversion, even as elevated incentive schemes and fresh bookings lent selective support. Inventory in channel is at around 55 days. Meanwhile, early-month deliveries buoyed truck and bus sales before monsoon-induced slowdowns, while liquidity constraints dampened enquiries and conversions. Dealers said there was some adverse impact of new CV taxation and mandatory air-conditioned cabins, both of which increased ownership costs. In the near term, above-normal monsoon rains-forecast at over 106% of the long period average in July, with regional variances-should bolster rural demand even as regions with heavy rainfalls could offer logistical complexities, FADA said. Early Kharif sowing augurs well for farm incomes and two-wheeler intake in rural markets. Robust government spending in the June-August period in road, railway, metro, and green-energy projects will likely underpin the CV and construction equipment segments. However, Vigneshwar said evolving geopolitical tensions and potential spillover from US tariff measures warrant vigilant supply-chain management and could temper consumer sentiment. "Also, challenges in securing rare earth materials have stalled component production, further constraining supply and retail volumes," he said.
