India's Auto Retail Sector Shows Modest Growth in April 2025, Fuelled by Rural Demand

FADA

The Federation of Automobile Dealers Associations (FADA) today released its April 2025 vehicle retail data, revealing a moderate overall growth of 3 percent YoY.

The two-wheeler segment emerged as the primary growth driver, registering a 2.25 percent increase in retail sales compared to April 2024 and a significant 11.84 percent MoM growth. FADA attributes this positive momentum to strong rural demand. However, the sector continues to face headwinds in the form of high financing costs and the pricing impact of OBD-2B emission norms.

The tractor segment demonstrated robust growth, with a 7.5 percent increase in retail sales year-on-year. This strong performance likely reflects the positive sentiment stemming from a strong Rabi harvest, which typically boosts agricultural activity and consequently, tractor demand.

In contrast to the strong performance of two-wheelers and tractors, the passenger vehicle segment experienced a modest 1.55 percent YoY growth, while witnessing a slight dip of 0.19 percent on MoM basis. The auto retail body attributes that deep discounts are prevalent in the market and while the demand for SUVs remains strong, the entry-level segment continues to exhibit sluggishness. FADA also noted that the PV inventory levels are currently around 50 days, significantly higher than their advocated norm of 21 days.

The commercial vehicle segment faced a contraction, with retail sales declining by 1.05 percent YoY and 4.44 percent on MoM basis. FADA suggests that recent price hikes by OEMs and flat freight rates are negatively impacting sales. Within the CV segment, the Small Commercial Vehicle category saw weak demand, while the bus segment remains steady.

Looking ahead to May 2025, FADA anticipates a positive outlook, primarily driven by the strong conclusion of the Rabi harvest. The expectation of a normal monsoon further strengthens this positive sentiment, suggesting continued momentum in rural demand which could positively influence vehicle sales across various segments.

In a significant development, FADA has begun releasing fuel-wise vehicle retail market share data across all key categories. This new initiative aims to provide stakeholders with a granular understanding of evolving energy preferences and the impact of regulatory influences on India's automotive ecosystem.

C S Vigneshwar, President, FADA, said, The new financial year began on a measured note as overall retails in April managed to grow by 3 percent YoY. All categories except CV closed in the green, with 2W, 3W, PV and Trac up 2.25 percent, 24.5 percent, 1.5 percent and 7.5 percent respectively, while CVs declined by 1 percent. 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.”

Category Apr '25 Apr '24 Change (in units) Change (in %) Mar '25 Change (in %)
YoY YoY MoM
Two-wheeler 1,686,774 1,649,591 37,183 2.25% 1,508,232 11.84%
Three-wheeler 99,766 80,127 19,639 24.51% 99,376 0.39%
E-Rickshaw (P) 39,528 31,811 7,717 24.26% 36,097 9.50%
E-Rickshaw with Cart (G) 7,463 4,215 3,248 77.06% 7,222 3.34%
Three-wheeler (Goods) 10,312 9,080 1,232 13.57% 11,001 -6.26%
Three-wheeler (Passenger) 42,321 34,959 7,362 21.06% 44,971 -5.89%
Three-wheeler (Personal) 142 62 80 129.03% 85 67.06%
Passenger Vehicle 349,939 344,594 5,345 1.55% 350,603 -0.19%
Tractor 60,915 56,635 4,280 7.56% 74,013 -17.70%
Commercial Vehicle 90,558 91,516 -958 -1.05% 94,764 -4.44%
LCV 46,751 47,267 -516 -1.09% 52,380 -10.75%
MCV 7,638 6,776 862 12.72% 7,200 6.08%
HCV 31,657 32,590 -933 -2.86% 29,436 7.55%
Others 4,512 4,883 -371 -7.60% 5,748 -21.50%
Total 2,287,952 2,222,463 65,489 2.95% 2,126,988 7.57%
VU - NTTF

Vijaybhoomi University and the Nettur Technical Training Foundation (NTTF) have introduced a training programme that allows employees at Tata Motors to earn university-recognised diplomas while working.

The initiative, marked by a convocation at Tata Motors’ Pimpri-Chinchwad plant, aligns with the National Education Policy 2020 by integrating vocational skills with higher education frameworks.

Under this partnership, NTTF Mechatronics programme graduates receive a Technical Diploma aligned with the National Higher Education Qualification Framework. Learners may subsequently progress to an Advanced Technical Diploma and a B.Tech in Mechatronics without leaving their jobs.

Sanjay Padode, President, Vijaybhoomi University, said, "A university should recognise learning wherever it genuinely happens. Many of these learners have developed advanced technical capability on the shopfloor through structured training and disciplined practice. Our role is to connect that learning with nationally recognised higher education so that they can continue to grow academically without stepping away from their careers."

Ravi Tennety, Managing Director, NTTF, said, "For more than 60-years, NTTF has prepared young people for careers in manufacturing and technology. This partnership gives our learners an opportunity to build on that foundation through formal higher education while continuing to contribute to industry. It creates new possibilities for lifelong learning."

Prof Ravikesh Srivastava, Vice Chancellor, Vijaybhoomi University, said, "India has spoken for many years about integrating skills, industry and higher education. What we are seeing today is one working model of how that integration can happen in practice. It is built on academic quality, industry relevance and learner mobility."

Sitaram Kandi, Chief Human Resources Officer, Tata Motors, said, "Manufacturing is changing rapidly, and so must the way we develop our people. Technical skills acquired on the shopfloor deserve opportunities for continuous academic progression, without requiring employees to step away from work. This collaboration between Tata Motors, NTTF and Vijaybhoomi University creates a pathway where learning, work and career advancement reinforce one another. It recognises that capability is built not only in classrooms but also through disciplined practice, problem-solving and real production environments. By enabling our employees and apprentices to earn nationally recognised university qualifications while continuing to contribute on the shopfloor, we are investing not only in individual growth but also in building a future-ready manufacturing workforce for India."

FADA Summit

The Federation of Automobile Dealers Associations (FADA), the apex body representing automotive dealers in India, held its 5th Finance and Insurance (F&I) Summit in Mumbai. The event brought together representatives from the banking, finance, insurance and auto retail sectors to discuss vehicle ownership and dealership viability.

The summit focused on wholesale finance, retail finance and insurance. Guest of Honour Dr. Pankaj Kanchan Rajesh Bhoyar attended the event, which featured participation from leaders including Dr. Rajan Pental of Yes Bank, Raul Rebello of Mahindra Finance and Abhinav Garg of AU Small Finance Bank.

During the event, FADA released the 3rd edition of its Dealer Satisfaction Study for Finance and Insurance, which surveyed over 700 dealerships. The report indicated an increase in satisfaction regarding wholesale finance, retail finance and insurance disbursements. It also identified a requirement for training in the commercial vehicle segment and increased funding for the used-vehicle market.

C S Vigneshwar, President, FADA, said, "If an automobile dealership were a human body, the OEM is our heart, pumping the product lifeblood. Wholesale finance is the bloodstream - the working capital that must flow freely to keep the body energetic. Retail finance is our legs, allowing the customer to walk out with a vehicle, while insurance is our immune system, protecting us when the unexpected occurs. The dealer is the face the customer trusts, but you cannot have a healthy face on an unhealthy body. It takes all four of us - the OEM, the financier, the insurer and the dealer, working in a perfect relay to keep the customer."

Vigneshwar advised dealers to conduct monthly reconciliation of payouts and commissions and to invest in the training of F&I desks, stating, "F&I income is no longer just 'the icing' but a 'loadbearing wall of dealership viability. Our dealer partners have highlighted a few key areas for improvement across finance and insurance. In wholesale finance, they expect more transparent, demand-led funding and quicker transmission of interest rate reductions. In retail finance, there is a strong need for more robust used-vehicle funding solutions and smoother reconciliation processes. In insurance, faster claims settlement and stronger protection of dealer-led customer relationships remain critical priorities.”

ZF Group Showcases Comprehensive Mobility Portfolio At Prawaas 5.0

ZF Group Showcases Comprehensive Mobility Portfolio At Prawaas 5.0

ZF Group has taken a prominent position at Prawaas 5.0, India’s premier multimodal transport exhibition, currently underway in Gandhinagar, Gujarat. The event, hosted by the Bus and Car Operators Confederation of India (BOCI), runs from 9 to 11 July 2026 at the Helipad Exhibition Centre, gathering industry leaders, government officials and technology providers to deliberate on the future of mobility.

ZF Group is presenting an extensive array of Original Equipment and Aftermarket solutions aimed at accelerating India's shift towards safer roads and cleaner commercial transportation. The company's exhibit spans electrification, braking systems, chassis engineering, advanced safety features and digital connectivity, underscoring its strategic intent to equip the Indian market with innovations that enhance performance and environmental sustainability.

A standout feature is the AxTrax 2, an integrated electric axle for light and medium-duty buses that consolidates the electric motor, inverter, electronic control unit and transmission into a compact housing. This system delivers high efficiency and power output, making it suitable for battery-electric, fuel-cell and trolley bus applications, thereby facilitating local zero-emission public transport.

Complementing this is the RL82A front axle system for city buses, featuring a low-floor design with a wide centre aisle and steering angles up to 55 degrees for improved manoeuvrability in congested settings. The system also incorporates low-maintenance construction and internally ventilated disc brakes, enhancing passenger comfort and active safety in demanding urban environments.

Additional offerings include Door Control Solutions with clamping protection and emergency functions, along with advanced driver assistance systems, electronic braking and stability controls, tyre pressure monitoring and connected technologies like Bus Connect. The Aftermarket division presents fleet-oriented products including 360-degree camera systems, brake components and maintenance essentials to ensure vehicle uptime and lifecycle reliability.

ZF Group India’s leadership is also contributing to industry conversations – Paramjit Singh Chadha, Senior Vice President, ZF Group, will be a lead panellist at the session ‘Electrifying School Bus Transport for a Cleaner Future’, held on 10 July. Through its comprehensive presence at Prawaas 5.0, ZF is reinforcing its dedication to India’s public transport evolution, showcasing safer, cleaner and more connected mobility solutions at Booth 12 A6C.

Akash Passey, President, ZF Group India, said, "India's public transport ecosystem is undergoing a fundamental transformation, driven by rapid urbanisation, sustainability goals and an increasing focus on road safety and operational efficiency. At ZF, we are enabling this transition by bringing together globally proven technologies and local engineering expertise to support our customers across every stage of their mobility journey. Our participation at Prawaas 5.0 reflects our commitment to delivering integrated solutions that not only address today's transportation challenges but also lay the foundation for a connected, electrified and software-driven future for commercial vehicles in India."

Paramjit Singh Chadha, Senior Vice President, ZF CVS India,  said, "The future of bus mobility will be defined by intelligent systems that seamlessly integrate safety, electrification, connectivity and vehicle control. At ZF, we are developing scalable technologies that help OEMs and fleet operators improve vehicle performance, passenger safety, operational uptime and total cost of ownership while preparing for the next generation of commercial vehicles. Through our comprehensive portfolio showcased at Prawaas 5.0, we continue to support India's transition towards smarter and more sustainable public transportation."

Honda India Foundation Begins Construction Of Road Safety Centre In Gujarat

Honda India Foundation - Road Safety Centre Gujarat

The Honda India Foundation (HIF) has held a ground-breaking ceremony for a Road Safety Centre of Excellence (CoE) in Viramgam, Gujarat.

The centre is designed to provide road safety education through training and simulation-based learning. It is scheduled to open in 2027 and is expected to provide safety programmes for 5,000 people each year.

The CoE will feature a Road Safety Education & Awareness Wing equipped with training tools for students, youth groups and local communities. Additionally, it will include an Accident Research & Data Analytics Unit to examine traffic patterns, identify risk locations and assist with safety audits.

Vinay Dhingra, Trustee, Honda India Foundation, said, “Road safety requires a combination of awareness, training and data-driven insights. Through this Centre of Excellence, we aim to create a practical platform that supports safer road behaviour, promotes road safety education and contributes to more informed safety interventions. This initiative reflects Honda India Foundation's continued commitment to strengthening road safety awareness and fostering safer road-use practices at the community level.”

Gyanender Singh Malik, Director General of Police, Gujarat State, said, “We appreciate Honda India Foundation’s support in setting up this Road Safety Centre of Excellence in Gujarat. The Centre will help strengthen structured road safety education and support data-led interventions for safer roads. Such collaborations add value to the state’s efforts towards improving road safety awareness and reducing road accident risks.”