Automobile sales inch up 2.95% in April, CV sales see decline, says Fada

Two-wheeler retail sales in April this year reached 1,686,774 units compared to 1,649,591 units in the same month last year, Fada said

Overall automobile retail sales in India rose by 2.95 per cent in April this year, reaching 22,87,952 units, the Federation of Automotive Dealers Associations (Fada) reported on Monday.

 

All vehicle categories except commercial vehicles (CV) showed growth. Two-wheelers increased by 2.25 per cent, three-wheelers by 24.5 per cent, passenger vehicles (PV) by 1.5 per cent, and tractors by 7.5 per cent, while commercial vehicles declined by 1 per cent.

 

Two-wheeler retail sales in April this year reached 1,686,774 units compared to 1,649,591 units in the same month last year, representing a 2.25 per cent increase.  ALSO READ | Hero MotoCorp records 43% YoY fall in April auto sales due to temporary production halt

 

Passenger vehicle retail last month totaled 3,49,939 units compared to 3,44,594 units in April 2024, showing a 1.55 per cent increase.

 

Total automobile sales in India during April 2024 were 2,222,463 units, according to Fada's statement. The purchases completed during festivals such as Akshay Tritiya, Bengali New Year, Baisakhi, and Vishu contributed to April ending positively.

 

"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," Fada President CS Vigneshwar said.  ALSO READ | Tata Motors sales down 6% at 72,753 units, Kia India sees 18% rise in April

 

Two-wheeler retail volumes showed a resilient upward trend, increasing by 2.25 per cent year-on-year and accelerating by 11.84 per cent month-on-month, which highlights a stable demand environment despite mixed economic challenges.

 

"Dealers reported buoyant enquiry growth in rural areas post-Rabi harvest, driven by strong crop yields, healthy reservoir levels and a favourable monsoon outlook, while wedding-season tailwinds sustained rural offtake," Vigneshwar said. 

  Vigneshwar stated that the passenger vehicle segment achieved a 1.55 per cent year-on-year growth despite few new model launches, alongside a slight 0.19 per cent month-on-month decrease. He noted, "This performance reflects a discount-led market and elevated inventories -- approximately a 50-day supply -- amid cautious consumer sentiment that tempered enquiry-to-sale conversions. 

He further stated, "Sustained SUV demand underpinned volumes even as entry-level customers remained cautious, underscoring the need for OEMs to recalibrate production and reduce stock levels to mitigate deeper discounts and carrying costs at dealerships." Vigneshwar mentioned that Fada continues to advocate a 21-day inventory standard at dealerships to improve market responsiveness and cost efficiency. 

Commercial vehicle retail sales decreased by 1.05 per cent to 90,558 units last month compared to 91,516 units in April 2024. Conversely, tractor retail sales increased by 7.56 per cent to 60,915 units, up from 56,635 units in the same month last year.