India’s April Auto Sales Rise Nearly 3% on Festive, Rural Demand

06/05/2025/9:34:am

Key Points

India’s auto retail sales rose 2.95% year-on-year in April 2025, reaching 22.88 lakh units.
Growth was driven by festive demand and strong rural sales post-harvest.
Two-wheelers, three-wheelers, and tractors saw significant gains; commercial vehicles declined 1%.
Passenger vehicle sales grew 1.55%, with SUVs leading demand but entry-level cars lagging.
Dealers report high inventory levels and cautious outlook for May due to credit constraints and seasonal factors.

New Delhi: India’s automobile retail market recorded a 2.95% year-on-year increase in April 2025, with total sales reaching 22,87,952 units, according to the Federation of Automobile Dealers Associations (FADA). This growth was fueled by strong consumer sentiment during festivals such as Chaitra Navratri, Akshaya Tritiya, Baisakhi, Bengali New Year, and Vishu, which encouraged buyers to make new vehicle purchases.

Segment-Wise Performance: Two-Wheelers, Three-Wheelers, and Tractors Surge

Two-wheelers: Sales rose 2.25% to 16,86,774 units, supported by robust rural demand after the Rabi harvest and the ongoing wedding season.
Three-wheelers: This segment saw the sharpest jump, up 24.5% to 99,766 units, reflecting a rebound in urban mobility and last-mile transport needs.
Tractors: Sales climbed 7.5% to 60,915 units, driven by healthy crop yields and favorable monsoon forecasts.
Passenger vehicles (PVs): Sales grew modestly by 1.55%, reaching 3,49,939 units. SUV demand remained strong, but entry-level models continued to struggle.
Commercial vehicles (CVs): The only segment to decline, CV sales fell 1% to 90,558 units, impacted by sluggish e-commerce activity and rising competition from electric three-wheelers.

Rural and Urban Trends: SUVs Shine, Entry-Level Cars Lag

FADA President C.S. Vigneshwar highlighted that rural demand was buoyed by good harvests, healthy reservoir levels, and a favorable monsoon outlook. In urban areas, new model launches and festive offers attracted buyers, but higher financing rates and stricter emission norms (OBD2B) have pushed up vehicle prices, making entry-level cars less attractive.

Inventory and May 2025 Outlook

Dealerships are currently holding about 50 days of inventory, with concerns over slower sales in May as customers await new launches. Tight credit conditions, high CIBIL score requirements, and large down payments may further dampen demand. Additionally, the onset of summer and school holidays could reduce showroom footfall, especially for two-wheelers. However, infrastructure projects and targeted company incentives could provide some support for commercial vehicle sales.

Brand-Wise Automobile Sales in India : April 2025

Passenger Vehicles (Cars & SUVs)

Rank	Brand	Units Sold	Market Share	YoY Change
1	Maruti Suzuki	1,38,021	39.4%	-0.83%
2	Mahindra	48,405	13.8%	+25.1%
3	Tata	44,065	12.6%	-6.1%
4	Hyundai	43,642	12.5%	-11.4%
5	Toyota	23,344	6.7%	+15.7%
6	Kia	21,618	6.2%	+9.2%
7	Skoda-VW	9,458	2.7%	+39.5%
8	MG Motor	4,871	1.4%	+14.2%
9	Honda	4,833	1.4%	-22.7%

Source: FADA, April 2025

Top-Selling Car Models (April 2025)

Rank	Model	Units Sold
1	Hyundai Creta	17,016
2	Maruti Dzire	16,996
3	Maruti Brezza	16,971
4	Maruti Ertiga	15,780
5	Mahindra Scorpio	15,534
6	Tata Nexon	15,457
7	Maruti Swift	14,592
8	Maruti Fronx	14,345
9	Maruti WagonR	13,413
10	Maruti Baleno	13,180