New Delhi [India] May 5 (ANI): The Federation of Automobile Dealers Associations (FADA) reported a 3 per cent rise in retail vehicle sales for April 2025, compared to the same month last year. FADA attributed increase in sales across all categories except commercial vehicles, according to its monthly vehicle retail sales data released on Monday.

FADA President C. S. Vigneshwar attributed April sales to pull back in market and pause in tariff by US. "With the tariff war paused, stock markets staged a sharp pullback--alleviating investor concerns--and customers thus leveraged Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi and Vishu to complete purchases, helping April end on a positive note,"

According to the report, the three-wheeler segment saw the highest growth of nearly 25 per cent compared to April 2024, followed by the tractor segment, which recorded a 7.5 per cent year-on-year increase.

On the other hand, commercial vehicles (CV) saw a minor (year-on-year) decline of 1 per cent and a more than 4 per cent month-on-month drop, weighed down by OEM price hikes and flat freight demand. It was the only segment that witnessed a decline for April 2025.

On contrary in CV segment "the bus segment exhibited resilience, underpinned by strong school-transport and staff-mobility demand." said FADA release.
The two-wheeler segment posted a rise of about 12 per cent, driven by strong rural demand. "Dealers reported buoyant enquiry growth in rural areas post-Rabi harvest, driven by strong crop yields, healthy reservoir levels and a favourable monsoon outlook, while wedding-season tailwinds sustained rural offtake," Vigneshwar said, referring to two-wheeler sales.
Passenger vehicle sales saw a modest 1.6 per cent increase, with strong SUV demand offset by sluggish sales in the entry-level segment.
FADA says the outlook for May 2025, looks bright as agriculture output is expected to be good.
"May's agricultural cycle is concluding on a strong note, underpinned by healthy crop prices and robust mandi procurement," FADA said in the release. It added, "at the same time, Kantar's Rural Barometer and GroupM data signal heightened consumer selectivity in rural India--household spending has outpaced income growth, and inflationary pressures are tempering discretionary purchases." (ANI)