FADA Reports Uplift in April 2025 Vehicle Sales Amid Market Rebound

The Federation of Automobile Dealers Associations (FADA) announced a 3% increase in retail vehicle sales for April 2025. While the commercial vehicle segment saw a decline, there was notable growth in the three-wheeler and tractor segments. Strong demand during festivals and robust rural interest bolstered sales figures.

The Federation of Automobile Dealers Associations (FADA) has reported an encouraging 3% rise in retail vehicle sales for April 2025, as opposed to the same period last year. All vehicle categories, except commercial vehicles, saw a boost, according to FADA's retail sales data released on Monday.

FADA President C. S. Vigneshwar credited the sales increase to the cessation of the tariff war with the US, which has resulted in a buoyant stock market and renewed consumer confidence. Celebrations such as Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi, and Vishu significantly drove consumer purchases.

The report highlights standout performance in the three-wheeler segment, with a nearly 25% surge compared to April 2024, and a 7.5% year-on-year rise in tractor sales. In contrast, commercial vehicles dipped by 1%, impacted by OEM price hikes and flat freight demand. Despite this, bus sales showed resilience, benefiting from strong school transport and staff mobility needs.

The two-wheeler segment posted a robust 12% increase, largely fueled by rural demand, buoyed by Rabi harvests, healthy crop yields, and a positive monsoon forecast. Meanwhile, passenger vehicles saw a 1.6% uptick, driven by strong SUV demand despite sluggishness in the entry-level segment.

Looking ahead, FADA remains optimistic about May 2025, anticipating strong agricultural output. Nevertheless, rural household spending continues to outstrip income growth, putting discretionary spending under pressure due to lingering inflationary concerns.

(With inputs from agencies.)