FADA Reports 3% Growth in April 2025 Vehicle Sales Across India

India's automobile retail sales grew by about 3 percent year-on-year in April 2025, with a total of around 2.29 million vehicles registered, according to data from the Federation of Automobile Dealers Associations (FADA). Growth was seen across most segments: two-wheelers rose by roughly 2.25 percent, passenger vehicles by about 1.5 percent, tractors by 7.5 percent, and three-wheelers led with nearly 25 percent growth. The increase was supported by strong rural demand post-Rabi harvest, favorable festival timing, and a positive stock market environment following a pause in international tariff tensions. Commercial vehicle sales, however, declined by about 1 percent year-on-year, affected by factors like price hikes and flat freight demand, though the bus segment remained resilient due to steady school and staff transport needs. Industry leaders anticipate continued positive momentum, aided by lower loan interest rates, tax rebates, and a strong agricultural outlook for the coming months. Despite some headwinds such as elevated financing costs and new emission norm-linked price increases, the overall sentiment remains optimistic for the Indian automotive sector.