Indian auto retails remain modest in April, says FADA

The Federation of Automobile Dealers Associations (FADA) released Vehicle Retail Data for Apr'25.

As per FADA, the new financial year began on a modest note as overall automobile retails in April managed to grow by 3% Y-o-Y.

2W retail volumes demonstrated a resilient up-cyclegrowing 2.25% YoY and accelerating 11.84% MoM underscoring a stable demand environment amid mixed headwinds. Urban demand remained robust, supported by new-model introductions, although elevated financing costs and OBD2B-linked price adjustments posed isolated bottlenecks.

Despite limited model introductions, the PV segment registered a 1.55% YoY increase alongside a marginal 0.19% MoM decline. This performance reflects a discount-led market and elevated inventoriesapproximately a 50-day supplyamid cautious consumer sentiment that tempered enquiry-to-sale conversions.

 

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.

Aprils CV segment faced a 1.05% YoY decline and a 4.44% MoM contraction following OEM-led price increases against stagnant freight rates and fleet utilisation.

Dealer feedback highlights that advance purchases in March resulted in elevated carryover stocks, while holiday calendars dampened fresh enquiries and delayed conversions particularly in the SCV cargo category, where price and product gaps have weighed heavily.

Conversely, the bus segment exhibited resilience, underpinned by strong school-transport and staff-mobility demand. Although financing availability remains broadly stable, enhanced support for first-time users will be critical to reignite momentum.

FADA further mentioned that Auto Industry will need to balance event-driven tailwinds against customer-level liquidity constraints and seasonal softness to sustain momentum. It points to a cautiously optimistic outlook where demand will be choppy, but disciplined inventory management, targeted incentives and easing borrowing costs should help the industry navigate the upcoming months.

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