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%

Toyota Kirloskar Motor Employees Win 5 Medallions For Excellence At WorldSkills Competition 2026

Toyota Kirloskar Motor

Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers in the country, has announced five of its employees were awarded the Medallion for Excellence at the 48th WorldSkills Competition 2026, held in Shanghai, China, from 22 to 27 September 2026.

Competing across three skill categories – mechatronics, additive manufacturing and robot systems integration – the company's employees secured five of the total 20 Medallions for Excellence won by the Indian contingent.

The WorldSkills Competition featured over 1,400 participants from 68 countries competing across 64 technical trade categories. The Medallion for Excellence is awarded to competitors who meet international standards by achieving performance benchmark scores below the gold, silver and bronze medal positions.

In the Mechatronics category, Deepu Mudigerepalya Srinivasa and Jayanth Kariyappa received the recognition. Pavan Bhadravati Suresha was awarded in Additive Manufacturing, while Abhishek Somanna Shignalli and Vinay Muttayya Hiremath received medallions in Robot Systems Integration. Additionally, TKM employees Tejas B.S. and Praveen Yankappa Hunakunti represented India in the Auto Body Repair and Welding categories respectively.

G Shankara, Chief Strategy Officer, Toyota Kirloskar Motor, said, "The achievements of our employees at the WorldSkills Competition 2026 exemplify the spirit of excellence, innovation and continuous learning. Five of our employees winning Medallions for Excellence in 3 categories on a global stage is a proud moment for Toyota Kirloskar Motor and for the nation. Their success reinforces our commitment to nurturing world-class talent and supporting India's journey towards becoming the global skill capital. We hope their journey inspires the next generation of young professionals to pursue excellence in technical and vocational careers."

Toyota Kirloskar Motor conducts technical training through the Toyota Technical Training Institute (TTTI), established in 2007 to provide a three-year residential programme for students from rural Karnataka. The automaker has trained over 140,000 individuals through vocational initiatives, including partnerships with over 120 Industrial Training Institutes (ITIs), 30 Government Tool Room & Training Centres (GTTCs), the Toyota Technical Education Program and Toyota Kaushalya.

Denso Terminates Spark Plug & Sensor Operations Business Sale To Niterra

Denso

Japanese tier 1 supplier Denso Corporation and Niterra Co., have agreed to terminate their business transfer agreement concerning Denso's Spark Plug and Exhaust Gas Sensor business, which was originally executed on 1 September 2025.

The initial agreement followed a memorandum of understanding signed in July 2023, under which both companies explored transferring Denso's spark plug and exhaust gas sensor operations – including oxygen sensors and air-fuel ratio sensors – to Niterra to streamline internal combustion engine (ICE) component manufacturing amidst global vehicle electrification.

The revision in the original plan is said to be due to changes in the market environment, which led Denso to reassess its strategy under its ‘CORE 2030’ Mid-Term Management Plan.

While vehicle electrification has progressed, global market conditions, regional energy supplies and regulatory environments have sustained demand for internal combustion and hybrid powertrains longer than projected. Following strategic reviews, Denso concluded that maintaining its spark plug and sensor business in-house remains optimal for supporting multi-powertrain vehicle systems, prompting the mutual agreement with Niterra to dissolve the transfer deal.

Denso stated that it will continue operating the business independently to meet powertrain requirements and supply chain demands across global markets.

ASDC - WorldSkills Shanghai 2026

In what comes as good news for the Indian automotive industry, competitors trained by the Automotive Skills Development Council (ASDC) secured five Medals for Excellence at the 48th WorldSkills Competition held in Shanghai, China, from 22 to 27 September 2026.

The event featured more than 1,400 participants from 70 countries, with India fielding a contingent of 70 competitors across 63 skill categories. Team India recorded a Top 10 global finish with six Silver Medals and 20 Medals for Excellence overall. The ASDC prepared candidates through training programmes, hands-on practice, exposure visits and competitions organised in collaboration with industry and academic partners.

The ASDC-supported participants awarded Medals for Excellence were Pavan Bhadravati Suresha in Additive Manufacturing, Kaif Khan in Car Painting, Md Seraj in Automobile Technology, Mallinath and Suhan Mascarenhas in Industry 4.0 and Abhishek Somanna Shignalli alongside Vinay Muttayya Hiremath in Robot Systems Integration.

Vinkesh Gulati, Chairperson, ASDC, said, "This stellar performance at WorldSkills Shanghai 2026 is a proud moment for ASDC and a testament to the immense talent of India’s youth. Winning Medals for Excellence across advanced automotive domains reflects our relentless commitment to aligning skill training with global standards. Our young champions have proved that Indian automotive talent is second to none."

Prasanna Pahade, CEO, ASDC, said, "Securing five Medallions across critical futuristic skills like Industry 4.0, Robotics, and Additive Manufacturing reaffirms the impact of ASDC's industry-aligned curriculum and intensive mentorship. The benchmark perfection demanded at WorldSkills validates our mission to build a future-ready workforce for the global mobility sector."

Training support for the participants was provided by industry organisations and institutes including Maruti Suzuki India, Toyota Kirloskar Motor, Mahindra & Mahindra, FANUC India, Axalta Coating Systems India, Festo India, SHINING 3D, Autodesk, NAMTECH, International Automobile Centre of Excellence, NTTF and Synoptic Skills Studio.

Simple Energy

Bengaluru-based electric two-wheeler manufacturer Simple Energy has closed a INR 17.5 billion (approximately USD 180 million) equity-based Series C funding round led by the Dr. Arokiaswamy Velumani Family Office, alongside Simple Energy Founder and CEO Suhas Rajkumar, Co-founder and CFO Ankit Gupta, Bengaluru-based investor Amit Mishra, and the Haran Family Office.

The transaction is said to represent the company's largest fundraising to date and the third-largest round recorded in India's electric two-wheeler sector.

The transaction brings total capital raised by the company to over INR 25.30 billion, following a INR 2.5 billion round of mixed debt and equity completed in June 2026. The new funds will be allocated toward constructing a new manufacturing facility, increasing production output, expanding retail and service networks, making workforce additions and funding research and development for future product iterations.

Suhas Rajkumar, Founder and CEO, Simple Energy, said, "This is a defining moment for Simple Energy. Over the past few years, we have built our core technology, products, manufacturing capabilities, and retail network in-house. This round gives us the capital to scale that foundation. Our priorities are a new manufacturing facility, higher production, an expanded distribution and service network, and the next generation of products. The continued support of our early investors reinforces our progress as we work to make Simple Energy one of India’s leading full-stack electric two-wheeler companies."

Dr A. Velumani, Creator - Thyrocare, AVMLabs & AVMSmiles, said, "I have been with Simple Energy since the early days, and I now repent I didn’t know it earlier. Growth of 4x in a year says both the company and industry are growing rapidly. SEPL owns end-to-end technology for chassis, battery, motor, and software. That is very rare in the Indian EV vertical. The next phase will focus on scaling in manufacturing, marketing, and retail networks. With tailwinds of global challenges in fossil energy, Simple is well positioned to be in the top 3 players of the EV2W vertical in India in just 3 years."

At present, Simple Energy operates a manufacturing capacity of 10,000 units per month and maintains a retail network of over 80 outlets across more than 60 cities, including Bengaluru, Delhi, Patna, Hyderabad and Chennai. Its product portfolio includes the Simple One, Simple Wave and Simple Ultra models, which target performance and family scooter market segments.