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Auto Retail Slump: FADA Reports Broad-Based Downturn in February 2025 Sales

New Delhi – The Federation of Automobile Dealers Associations (FADA) has released its February 2025 vehicle retail data, revealing a sharp -7% year-on-year (YoY) decline across all major segments. This downturn aligns with FADA’s earlier forecast indicating a “Flat to De-growth” sentiment.

Key Figures from February 2025 Auto Retail Report:

  • Two-Wheelers (2W): -6% YoY
  • Three-Wheelers (3W): -2% YoY
  • Passenger Vehicles (PV): -10% YoY
  • Tractors: -14.5% YoY
  • Commercial Vehicles (CV): -8.6% YoY

Industry-Wide Inventory Woes

Dealers raised concerns about OEMs pushing excess inventory without consent, putting pressure on showroom space and cash flow. While manufacturers aim to meet wholesale targets, aligning these goals with genuine market demand is crucial for dealer viability.

Segment-Wise Insights

Two-Wheelers: Despite an 8.57% FY YTD growth, February sales fell -6.33% YoY. Urban markets faced a sharper decline (-7.38%) compared to rural areas (-5.5%), where improved agricultural sentiment and marriage-season demand provided some relief. Dealers cited inventory imbalances, aggressive pricing post-OBD-2B, weak consumer sentiment, and limited financing as primary concerns.

Passenger Vehicles: PV sales dropped -10.34% YoY despite modest YTD growth of 4%. Entry-level segments were hit hardest, with delayed conversions and challenging sales targets. Inventory levels remained high, averaging 50-52 days, prompting dealers to urge manufacturers to adjust supply in line with actual demand.

Commercial Vehicles: While YTD performance saw a minor dip (-0.5%), February retail sales dropped -8.6% YoY. Tighter financing norms, subdued bulk orders, and weak transportation sector demand were cited as key challenges. However, improved tipper bookings, spurred by government infrastructure spending, provided some support.

Outlook for March 2025: Cautiously Optimistic

Dealers maintain cautious optimism for March, with 45% predicting growth, 40% expecting flat performance, and 14% foreseeing continued de-growth.

Key Growth Drivers:

  • Multiple festivals like Holi, Gudi Padwa, and Navratri, boosting retail sentiment.
  • Year-end depreciation benefits encouraging fleet and institutional buyers.
  • Positive agricultural output and improved rural demand for two-wheelers.

Challenges:

  • Five consecutive months of stock market decline have dampened consumer sentiment and reduced discretionary spending.
  • Dealers warn that liquidity challenges could continue to affect buyer sentiment in the CV and entry-level PV segments.

Key Findings from Dealer Sentiment Survey

  • Liquidity: Neutral (51.89%), Bad (28.3%), Good (19.81%)
  • Overall Sentiment: Neutral (44.03%), Bad (30.82%), Good (25.16%)
  • March 2025 Outlook: Growth (45.28%), Flat (40.25%), De-growth (14.47%)

As the industry navigates these mixed signals, dealers emphasize the need for synchronized strategies between OEMs and dealerships to stabilize inventory levels and foster consumer confidence in the months ahead.

Chart showing Vehicle Retail Data for YTD FY’25 and February’25

All India Vehicle Retail Data for YTD FY’25 (April’24 to Feb’25)

CATEGORYYTD FY’25YTD FY’24Growth %
2W1,73,62,1941,59,91,6228.57%
3W11,21,60710,62,6225.55%
CV9,13,3229,18,004-0.51%
PV37,91,85536,30,6184.44%
TRAC8,09,1078,13,921-0.59%
Total2,39,98,0852,24,16,7877.05%

Source: FADA Research

All India Vehicle Retail Data for February’25

CATEGORYFeb’25Jan’25Feb’24MoM%YoY%
2W13,53,28015,25,86214,44,674-11.31%-6.33%
3W94,1811,07,03396,020-12.01%-1.92%
E-RICKSHAW(P)32,36138,83036,548-16.66%-11.46%
E-RICKSHAW WITH CART (G)6,4015,7604,44211.13%44.10%
THREE – WHEELER (GOODS)10,82912,03611,030-10.03%-1.82%
THREE – WHEELER (PASSENGER)44,52250,32243,932-11.53%1.34%
THREE – WHEELER (PERSONAL)688568-20.00%0.00%
PV3,03,3984,65,9203,38,390-34.88%-10.34%
TRAC65,57493,38176,693-29.78%-14.50%
CV82,76399,42590,551-16.76%-8.60%
LCV45,74256,41049,370-18.91%-7.35%
MCV6,2126,9756,561-10.94%-5.32%
HCV26,09430,06129,483-13.20%-11.49%
Others4,7155,9795,137-21.14%-8.21%
Total18,99,19622,91,62120,46,328-17.12%-7.19%

Source: FADA Research

All India Vehicle Retail Strength Index for Feb’25 on basis of Urban & Rural RTOs. 

All India Vehicle Retail Strength YoY and MOM comparison for Feb’25.

CategoryMoM%YoY%CategoryMoM%YoY%
2WCV
Urban-14.25%-7.38%Urban-16.13%-6.73%
Rural-9.04%-5.54%Rural-17.42%-10.51%
3WTRAC
Urban-12.33%-3.91%Urban-30.26%-13.82%
Rural-11.69%0.13%Rural-29.67%-14.66%
PVTotal
Urban-34.98%-10.57%Urban-20.05%-7.98%
Rural-34.72%-9.97%Rural-14.53%-6.53%

Source: FADA Research

All India Vehicle Retail Strength YoY comparison for YTD FY’25 (April’24 to Feb’25).

CategoryYoY%CategoryYoY%
2WCV
Urban7.03%Urban-0.97%
Rural9.09%Rural-0.97%
3WTRAC
Urban0.96%Urban-5.01%
Rural10.14%Rural0.47%
PVTotal
Urban-0.36%Urban4.50%
Rural6.29%Rural7.99%

Source: FADA Research

Motor Vehicle Road Tax Collection (in Rs Crore) for Feb’25

 Feb’25Jan’25Feb’24MoM%YoY%
Motor Vehicle Road Tax Collection6,3408,6036,84326.3%-7.4%

Source: FADA Research

Disclaimer:

  1. The above numbers do not have figures from TS.
  2. Vehicle Retail Data has been collated as on 04.03.25 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,378 out of 1,438 RTOs.
  3. Commercial Vehicle is subdivided in the following manner
    1. LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
    2. MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
    3. HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
    4. Others – Construction Equipment Vehicles and others
  4. 3-Wheeler is sub-divided in the following manner
    1. E-Rickshaw – Passenger
    2. E-Rickshaw – Goods
    3. 3-Wheeler – Goods
    4. 3-Wheeler – Passenger
    5. 3-Wheeler – Personal

OEM wise Market Share Data for Feb’25 with YoY comparison

Two-Wheeler OEMFEB’25Market Share (%) FEB’25FEB’24Market Share (%) FEB’24
HERO MOTOCORP LTD3,85,98828.52%4,14,15128.67%
HONDA MOTORCYCLE AND SCOOTER INDIA (P) LTD3,28,50224.27%3,56,24524.66%
TVS MOTOR COMPANY LTD2,53,49918.73%2,48,62117.21%
BAJAJ AUTO GROUP1,53,63111.35%1,71,56111.88%
BAJAJ AUTO LTD1,53,63111.35%1,71,56011.88%
CHETAK TECHNOLOGY LIMITED0.00%10.00%
SUZUKI MOTORCYCLE INDIA PVT LTD76,6735.67%73,5145.09%
ROYAL-ENFIELD (UNIT OF EICHER LTD)70,1305.18%65,9534.57%
INDIA YAMAHA MOTOR PVT LTD46,0953.41%53,2693.69%
ATHER ENERGY PVT LTD11,8070.87%9,0960.63%
OLA ELECTRIC TECHNOLOGIES PVT LTD8,6470.64%34,0632.36%
GREAVES ELECTRIC MOBILITY PVT LTD3,7000.27%2,4880.17%
PIAGGIO VEHICLES PVT LTD2,3020.17%2,9290.20%
CLASSIC LEGENDS PVT LTD2,2870.17%2,6210.18%
PUR ENERGY PVT LTD1,5660.12%4980.03%
Others Including EV8,4530.62%9,6650.67%
Total13,53,280100%14,44,674100%

Source: FADA Research

Disclaimer:

  1. The above numbers do not have figures from TS.
  2. Vehicle Retail Data has been collated as on 04.03.25 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,378 out of 1,438 RTOs.
  3. Others include OEMs accounting less than 0.1% Market Share.
Three-Wheeler OEMFEB’25Market Share(%) FEB’25FEB’24Market Share(%) FEB’24
BAJAJ AUTO LTD34,64436.78%35,43436.90%
PIAGGIO VEHICLES PVT LTD6,6517.06%8,2668.61%
MAHINDRA & MAHINDRA LIMITED6,5016.90%5,8416.08%
MAHINDRA LAST MILE MOBILITY LTD6,4826.88%5,4595.69%
MAHINDRA & MAHINDRA LIMITED190.02%3820.40%
YC ELECTRIC VEHICLE3,3723.58%3,3563.50%
TVS MOTOR COMPANY LTD2,4312.58%1,9392.02%
ATUL AUTO LTD2,3272.47%1,9682.05%
SAERA ELECTRIC AUTO PVT LTD2,0752.20%2,0902.18%
DILLI ELECTRIC AUTO PVT LTD1,7091.81%1,9912.07%
OMEGA SEIKI PVT LTD1,1061.17%4980.52%
Others including EV33,36535.43%34,63736.07%
Total94,181100%96,020100%

Source: FADA Research

Disclaimer:

  1. The above numbers do not have figures from TS.
  2. Vehicle Retail Data has been collated as on 04.03.25 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,378 out of 1,438 RTOs.
  3. Others include OEMs accounting less than 1% Market Share.
Commercial Vehicle OEMFEB’25Market Share (%) FEB’25FEB’24Market Share(%) FEB’24
TATA MOTORS LTD26,92532.53%32,55535.95%
MAHINDRA & MAHINDRA LIMITED21,14925.55%21,27523.50%
ASHOK LEYLAND LTD14,39317.39%15,40817.02%
VE COMMERCIAL VEHICLES LTD6,2687.57%6,1276.77%
MARUTI SUZUKI INDIA LTD3,6694.43%3,3473.70%
FORCE MOTORS LIMITED1,7622.13%2,0602.27%
DAIMLER INDIA COMMERCIAL VEHICLES PVT. LTD1,6992.05%1,8602.05%
SML ISUZU LTD8120.98%7740.85%
Others6,0867.35%7,1457.89%
Total82,763100.00%90,551100.00%

Source: FADA Research

Disclaimer:

  1. The above numbers do not have figures from TS.
  2. Vehicle Retail Data has been collated as on 04.03.25 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,378 out of 1,438 RTOs.
PV OEMFEB’25Market Share (%) FEB’25FEB’24Market Share (%) FEB’24
MARUTI SUZUKI INDIA LTD1,18,14938.94%1,33,13539.34%
MAHINDRA & MAHINDRA LIMITED39,88913.15%39,72511.74%
TATA MOTORS LTD38,69612.75%45,71013.51%
HYUNDAI MOTOR INDIA LTD38,15612.58%47,54014.05%
TOYOTA KIRLOSKAR MOTOR PVT LTD21,5617.11%20,5846.08%
KIA INDIA PRIVATE LIMITED18,7946.19%20,9196.18%
SKODA AUTO VOLKSWAGEN GROUP6,4622.13%5,9651.76%
SKODA AUTO VOLKSWAGEN INDIA PVT LTD6,4382.12%5,8991.74%
VOLKSWAGEN AG/INDIA PVT. LTD.20.00%20.00%
AUDI AG200.01%610.02%
SKODA AUTO INDIA/AS PVT LTD20.00%30.00%
HONDA CARS INDIA LTD5,1661.70%6,7792.00%
MG MOTOR INDIA PVT LTD4,5511.50%3,9161.16%
RENAULT INDIA PVT LTD2,5230.83%3,5891.06%
NISSAN MOTOR INDIA PVT LTD1,7060.56%2,4610.73%
MERCEDES -BENZ GROUP1,2530.41%1,3410.40%
MERCEDES-BENZ INDIA PVT LTD1,1260.37%1,2440.37%
MERCEDES -BENZ AG1150.04%960.03%
DAIMLER AG120.00%10.00%
BMW INDIA PVT LTD1,1380.38%1,1290.33%
FORCE MOTORS LIMITED7870.26%8070.24%
JAGUAR LAND ROVER INDIA LIMITED4350.14%2900.09%
PCA AUTOMOBILES INDIA PVT LTD4070.13%5740.17%
FCA INDIA AUTOMOBILES PRIVATE LIMITED3080.10%4260.13%
BYD INDIA PRIVATE LIMITED2540.08%1510.04%
VOLVO AUTO INDIA PVT LTD820.03%1780.05%
Others3,0811.02%3,1710.94%
Total3,03,398100%3,38,390100%

Source: FADA Research

Disclaimer:

  1. The above numbers do not have figures from TS.
  2. Vehicle Retail Data has been collated as on 04.03.25 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,378 out of 1,438 RTOs.
Tractor OEMFEB’25Market Share (%) FEB’25FEB’24Market Share (%) FEB’24
MAHINDRA & MAHINDRA LIMITED (TRACTOR)15,51023.65%17,49522.81%
MAHINDRA & MAHINDRA LIMITED (SWARAJ DIVISION)12,73719.42%14,12418.42%
INTERNATIONAL TRACTORS LIMITED8,35012.73%9,85612.85%
TAFE LIMITED6,57810.03%8,31310.84%
ESCORTS KUBOTA LIMITED (AGRI MACHINERY GROUP)6,57510.03%7,4579.72%
JOHN DEERE INDIA PVT LTD (TRACTOR DEVISION)5,0937.77%5,8937.68%
EICHER TRACTORS4,0926.24%5,3717.00%
CNH INDUSTRIAL (INDIA) PVT LTD2,6944.11%3,0203.94%
KUBOTA AGRICULTURAL MACHINERY INDIA PVT.LTD.1,0161.55%1,7412.27%
Others2,9294.47%3,4234.46%
Total65,574100%76,693100%

Source: FADA Research

Disclaimer:

  1. The above numbers do not have figures from TS.
  2. Vehicle Retail Data has been collated as on 04.03.25 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,378 out of 1,438 RTOs.
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