NEW DELHI, 7th April 2025
India’s vehicle retail sector experienced a growth of 6.46 percent, with a total of 26,143,943 units sold in the fiscal year 2025, as compared to 24,558,437 units sold in the previous fiscal year, FY 2024. Among the various categories, passenger vehicles (PV) increased by 4.87 percent, to 4,153,432 units from 3,960,602 units.
Two-wheelers (2W) saw a 7.71 percent increase in sales, rising to 18,877,812 from 17,527,115, while commercial vehicles (CV) remained relatively stable, declining by 0.17 percent.
FADA President C.S. Vigneshwar stated that this sales growth reflects increased consumer confidence and market resilience, though challenges such as high inventory levels in the PV segment and financing difficulties in rural areas continue to be a concern.
The three-wheeler (3W) segment also saw a 4.54 percent annual growth rate, rising from 1,220,981 units in FY 2024 to FY 2025. This growth is primarily due to an increase in demand for electric three-wheelers, which play an important role in last-mile transportation.
In terms of electric vehicle (EV) sales, FADA reported a gradual increase in penetration, with EVs accounting for 5.9 percent of total two-wheeler sales, 56.1 percent of three-wheeler sales, and 2.3 percent of passenger vehicle sales in March.
Vigneshwar noted that EV adoption, particularly in the two- and three-wheeler markets, is gaining traction, though it is still dependent on ongoing policy support and improvements in charging infrastructure.
Looking ahead, FADA expects the growth momentum to continue into FY 2025-26, but it also warns of potential challenges such as rising fuel prices, the risk of overstocking in the PV segment, and reliance on monsoon conditions to boost rural demand.
With several state elections and a general election approaching, the association emphasized the importance of policy stability and close monitoring of market trends.
