India's auto retail sector growth at 6.46% in FY'25, reports FADA

The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for FY25 and March'25.

According to the data, India's auto retail sector grew by 6.46% in FY'25. In March 2025, the overall sector declined by 0.7% Y-o-Y.

Passenger vehicles (PV) growth stood at 4.87% for FY'25 and 6% in March 2025 on year. PV also performed better in rural belts with 7.93% growth, compared to 3.07% in urban markets.

Commercial vehicle sales remained flat at -0.17% in FY'25, but grew 2.6% in March 2025.

Two-Wheelers (2W) ended the year at +7.71%, falling short of the hoped-for double-digit increase. In March 2025, sales declined 1.7%.

 

Three-Wheelers (3W) sales in rural regions rose by 8.70%, significantly outpacing 0.28% growth in cities. Overall 3W growth fell 5.6% in March 2025.

Many dealers raised alarms over OEM-set targets that lacked mutual agreement. PV stock levels rose to 5055 days, raising carrying costs. Cautious lending, upcoming OBD2-related price hikes, and weak rural liquidity weighed on sentiments, the FADA reported.

Going ahead, FADA anticipates mid to high single-digit growth in 2W, and low single-digit growth in PV and CV. New model launches, EV expansions, and improved rural incomes are key supportive factors for sector growth ahead.

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