Weak earnings, tougher financing norms drive auto retail sales down

PVs dip 10% in Feb; M&M breaks into number two spot for first time

Weak earnings, declining job market, global uncertainty, and tougher financing norms spoiled customer interest in the automobile sector, resulting in a downslide in retail sales. While the passenger vehicle (PV) segment witnessed a 10 per cent dip in sales in February 2025 versus last year, the two-wheeler (2W) market also declined by 6 per cent.

 

Additionally, the meltdown in Dalal Street that wiped out investor wealth to the tune of ₹44 trillion in 2025 also seems to be having a ripple effect on the country’s vibrant automobile retail sales.

 

During the period under review, the entire auto retail sales also