India's Auto Retail Sector Shows Modest Growth in April 2025, Fuelled by Rural Demand
- By MT Bureau
- May 05, 2025
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% |
- Skoda Auto Volkswagen India
- SAVWIPL
- Automotive Research Association of India
- ARAI
- Bharat NCAP
- H D Kumaraswamy
- Piyush Arora
- Global NCAP
- Dr Reji Mathai
Skoda Auto Volkswagen India Partners ARAI To Expand Crash Testing Infrastructure In Pune
- By MT Bureau
- October 30, 2026
Skoda Auto Volkswagen India (SAVWIPL) and the Automotive Research Association of India (ARAI) have signed a Memorandum of Understanding (MoU) to expand vehicle safety and crash testing infrastructure in Chakan, Pune.
Under the agreement, SAVWIPL will transfer a land parcel adjacent to its Chakan car manufacturing plant to ARAI. The site will be used by ARAI to construct an advanced crash test facility for future mobility vehicles, covering both battery electric vehicle (BEV) and internal combustion engine (ICE) models. The facility will expand domestic validation capacity for electric vehicles, support faster implementation of Bharat NCAP requirements and enable testing needed for international export markets.
H D Kumaraswamy, Union Minister of Heavy Industries and Steel, Government of India, said, "Expanding local R&D and safety testing infrastructure is essential as India's automotive sector advances. This initiative between ARAI and Škoda Auto Volkswagen India strengthens domestic testing capacity for electric vehicles and safety standards. By establishing this facility in Chakan, we are supporting the faster implementation of future Bharat NCAP requirements, helping address India-specific road safety challenges. It will also strengthen the capabilities of OEMs in India to develop vehicles that meet stringent export market requirements."
Piyush Arora, MD & CEO, Skoda Auto Volkswagen India, said, "Vehicle safety and local engineering capability are central to our operations in India. When ARAI required land for a specialised crash test facility adjacent to our Chakan plant, we adjusted our future expansion layout to support their request. As the company whose INDIA 2.0 vehicles were the first India-made cars to achieve 5-star Global NCAP ratings for both Adult and Child Occupant Protection, we have always believed that raising safety standards benefits the entire industry. This strategic partnership will help accelerate the development of safer vehicles in India by shortening EV development timelines, strengthening Bharat NCAP testing, and expanding the country's overall automotive engineering capabilities."
Dr Reji Mathai, Director, ARAI, said, "The future of mobility will be defined not only by innovation but also by the strength of the ecosystem that enables safe, sustainable, and globally competitive vehicle development. This MoU represents a strategic milestone in India’s automotive testing and safety infrastructure. As vehicle technologies evolve rapidly, the need for advanced validation, crashworthiness assessment, and regulatory compliance capabilities will continue to grow. We view this partnership as an important step towards building world-class capabilities that will serve the mobility sector for decades to come."
- Rajendra Petkar
- Tata Motors
- Tata Technologies
- ARAI
- Automotive Research Association of India
- SIAM
- Society of Indian Automobile Manufacturers
Tata Motors’ President & CTO Rajendra Petkar To Step Down
- By MT Bureau
- October 30, 2026
Rajendra Petkar, President and long-time Head of Engineering at Tata Motors, is to step down after an illustrious career of nearly four decades, according to media reports.
Petkar has rich experience in vehicle engineering and technology development across passenger cars and commercial vehicles. He has played a key role in reshaping the latest product portfolio at Tata Motors as he drove technological transitions managing Emerging Mobility & Technology Strategy at the automaker.
In his tenure as President and Chief Technology Officer of Tata Motors, Petkar managed an engineering division of over 5,000 personnel spanning technical centres in India, the United Kingdom and Italy.
Petkar led the introduction of battery electric vehicle platforms, the commercialisation of hydrogen fuel cell buses and the initial deployment of hydrogen internal combustion engine (ICE) trucks. Before re-joining Tata Motors, Petkar was deployed from Tata Technologies to Tata Motors between October 1999 and September 2015.
Beyond his corporate roles at Tata Motors, Petkar served as President of the Automotive Research Association of India (ARAI) from 2021 to 2023, Chairman of the Sustainable Mobility Group at the Society of Indian Automobile Manufacturers (SIAM), and Member of the National Automotive Board, alongside holding positions as an Independent Director across multiple corporate boards.
- Hyundai Motor India
- HMIL
- Hyundai Innovation Challenge 2026
- ZER01NE
- Hyundai Motor India Engineering
- HMIE
- Pulse Energy
- Novus Hi-tech
- CraftifAI
- AmpereHour
- Enmovil
- GoComet
- Haulog Technologies
- Syook
- Unbox Robotics
- Motiv AI
- AMI Technologies
- Dasham Labs
- AltMat
- Simlioncis
- Ravity
- EmpFly Services
- Tarun Garg
Hyundai Motor India Shortlists 16 Startups Under Inaugural Hyundai Innovation Challenge 2026
- By MT Bureau
- October 30, 2026
Hyundai Motor India (HMIL), one of the leading passenger vehicle manufacturers, has concluded the Hyundai Innovation Challenge 2026, shortlisting 16 startups from a pool of 980 applications nationwide to explore technology collaborations and commercial engagements.
Supported by Hyundai Motor Group’s open innovation platform ZER01NE, the challenge was launched in April 2026 across 15 thematic areas, including electrification, smart mobility, connectivity, Advanced Driver Assistance Systems (ADAS), artificial intelligence, customer experience and vehicle technologies.
The 16 shortlisted firms presented their solutions to executive teams from HMIL and Hyundai Motor India Engineering (HMIE) during the Grand Pitch Day on 29 October 2026.
The shortlisted startups comprise Pulse Energy, Novus Hi-tech, CraftifAI, AmpereHour, Enmovil, GoComet, Haulog Technologies, Syook, Unbox Robotics, Motiv AI, AMI Technologies, Dasham Labs, AltMat, Simlioncis, Ravity and EmpFly Services.
As a next step, HMIL and HMIE will evaluate opportunities to engage with the selected entities through paid Proofs-of-Concept, technology validation programs, and pilot implementations to assess the commercial viability of their solutions.
Tarun Garg, MD & CEO of Hyundai Motor India, said, "The Hyundai Innovation Challenge 2026 reflects our belief that the future of mobility will be driven by collaboration between established industry leaders and innovative startups. The enthusiastic participation from startups demonstrates the tremendous entrepreneurial talent and technological capability that exists in India. Through this initiative, we have discovered innovative solutions and established meaningful relationships that can contribute to shaping smarter, safer, and more sustainable mobility experiences. We remain committed to supporting the startup ecosystem and transforming promising ideas into impactful solutions for customers and society."
TVS Apache Racing Experience GP Returns For Season 3 With Seven-Country Calendar
- By MT Bureau
- October 29, 2026
TVS Racing has announced that the third season of the TVS Apache Racing Experience GP (ARE) International will begin on 15 November 2026, marking the widest reach yet for the customer-focused championship. The 2026–27 series will visit seven nations – India, Mexico, Colombia, Nepal, Morocco, Egypt and Ivory Coast – as the brand pushes to widen access to competitive riding. Organisers describe the move as a step towards a structured and aspirational entry point into motorsport while extending the company's international racing footprint.
The upcoming season will run multiple categories, including a women's customer class introduced earlier, and will extend to 20 cities with over 1,200 expected entrants. To date, the property has already covered 20 cities and drawn more than 4,000 participants since launching. TVS Racing views the growth as part of a wider mission to make the sport more inclusive and open to ordinary enthusiasts.
Originally launched in 2007, the initiative gave Apache owners a safe, professional setting in which to try competitive racing. It was reorganised into a formal championship in 2023. The 2025–26 edition took the series abroad for the first time, spanning India, Mexico, Colombia and Nepal and closing with a finale at the Madras International Circuit in Chennai. The third season builds on that foundation.
The championship now serves customers, enthusiasts and budding racers alike, drawing them together around performance and competition. The Apache line has over seven million international customers, backed by the Apache Owners Group, which counts more than 500,000 registered members. More details are available on the company website.
Vimal Sumbly, Head – Premium Business, TVS Motor Company, said, “TVS ARE GP has grown from a customer racing platform into a championship that embodies TVS Racing’s belief in making competitive motorsport more accessible and creating a strong pathway for racing talent. As we enter Season 3, our expansion to seven countries marks an important step in taking this racing ecosystem to a truly global stage. For us, this is not simply about expanding the championship’s footprint but about extending our racing culture, expertise and standards to riders across markets while creating opportunities for emerging talent to experience competitive racing. With a strong foundation built on championships and a deep understanding of grassroots motorsport, TVS ARE GP is evolving into a globally connected platform that will continue to nurture riders, strengthen racing communities and take the spirit of TVS Racing to the world.”

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