Thursday | Apr 17 2025 | 01:04:37 PM
India’s auto retail sector kicked off 2025 on a strong note, posting a 6.6 per cent year-on-year (YoY) growth in January, in line with expectations. All vehicle categories—two-wheelers, three-wheelers, passenger vehicles (PV), tractors, and commercial vehicles (CV)—recorded positive sales.
Passenger vehicles led the surge with 15.5 per cent YoY growth, benefiting from new model launches, improved financing, and a “2025 model year” advantage in registrations. Two-wheeler sales rose 4.15 per cent YoY, supported by urban demand and marriage season purchases, though rural liquidity challenges remain. Commercial vehicles grew 8.2 per cent YoY, driven by higher freight rates and passenger carrier demand, despite financing hurdles.
FADA President, C S Vigneshwar, shared his perspective on the Auto Retail performance for January 2025 "Many dealers noted improved demand but also pointed to last year’s heavy discounting, which helped clear older models and shift registrations. Inventory levels have improved, dropping by around five days to 50–55 days, suggesting improved supply-demand balance. Overall, the sector shows cautious optimism but faces persistent headwinds.”
Looking ahead, nearly half of auto dealers (46 per cent) expect growth in February, while 43 per cent predict stable sales. Market sentiment remains cautiously optimistic, supported by fresh product launches, promotional activities, and better financing options. However, concerns over rural liquidity, inflation, and strict lending policies could temper growth.
Furthermore, improved inventory management, better financing options from select lenders and backlogged orders in certain segments (such as commercial vehicles) add to the sense of guarded confidence. With supportive policies and a post-budget lift in consumer sentiment, many believe February could see a stable or slightly elevated sales curve.
At the same time, shorter working days, pockets of weak rural liquidity and inflationary pressures remain areas of concern, potentially limiting the extent of any upswing. Strict lending criteria, costlier vehicles and subdued demand in certain industrial sectors could weigh on overall performance.
All India Vehicle Retail Data for YTD FY’25 (April’24 to Jan’25)
CATEGORY | YTD FY'25 | YTD FY'24 | Growth % |
2W | 1,60,01,097 | 1,45,46,886 | 10.00% |
3W | 10,27,437 | 9,66,612 | 6.29% |
CV | 8,30,028 | 8,27,451 | 0.31% |
PV | 34,76,061 | 32,92,192 | 5.59% |
TRAC | 7,43,538 | 7,37,262 | 0.85% |
Total | 2,20,78,161 | 2,03,70,403 | 8.38% |
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All India Vehicle Retail Data for January'25
CATEGORY | Jan'25 | Dec'24 | Jan'24 | MoM% | YoY% |
2W | 15,25,862 | 11,97,742 | 14,65,039 | 27.39% | 4.15% |
3W | 1,07,033 | 93,892 | 1,00,160 | 14.00% | 6.86% |
E-RICKSHAW(P) | 38,830 | 40,845 | 40,537 | -4.93% | -4.21% |
E-RICKSHAW WITH CART (G) | 5,760 | 5,826 | 3,744 | -1.13% | 53.85% |
THREE-WHEELER (GOODS) | 12,036 | 9,122 | 10,716 | 31.94% | 12.32% |
THREE-WHEELER (PASSENGER) | 50,322 | 38,031 | 45,113 | 32.32% | 11.55% |
THREE-WHEELER (PERSONAL) | 85 | 68 | 50 | 25.00% | 70.00% |
PV | 4,65,920 | 2,93,465 | 4,03,300 | 58.77% | 15.53% |
TRAC | 93,381 | 99,292 | 88,741 | -5.95% | 5.23% |
CV | 99,425 | 72,028 | 91,877 | 38.04% | 8.22% |
LCV | 56,410 | 39,794 | 51,260 | 41.76% | 10.05% |
MCV | 6,975 | 4,662 | 5,586 | 49.61% | 24.87% |
HCV | 30,061 | 22,781 | 30,220 | 31.96% | -0.53% |
Others | 5,979 | 4,791 | 4,811 | 24.80% | 24.28% |
Total | 22,91,621 | 17,56,419 | 21,49,117 | 30.47% | 6.63% |
Source: FADA Research
