FADA Reports 3% Rise in April 2025 Vehicle Sales Amid Economic Tailwinds

In an encouraging development for the automobile industry, the Federation of Automobile Dealers Associations (FADA) has reported a 3% rise in vehicle sales for April 2025 compared to the same period last year. This boost was predominantly driven by festive demand and an improved economic landscape following a pause in the U.S. tariff war.

The report, released on Monday, highlighted that all vehicle categories recorded sales growth, except for commercial vehicles, which struggled with a slight year-on-year drop of 1%. Significant price hikes by original equipment manufacturers and tepid freight demand were cited as key reasons for the decline in this segment. Nonetheless, the bus sector within commercial vehicles showed resilience, supported by strong demand for school transportation and staff mobility.

Rural demand significantly contributed to a 12% increase in two-wheeler sales, buoyed by solid Rabi harvests and a favorable monsoon outlook. Meanwhile, passenger vehicle sales saw a 1.6% uptick, propelled by robust SUV sales, despite sluggish entry-level segment performance. Looking ahead, FADA remains optimistic about May 2025, citing promising agricultural output and continued strong crop prices as key drivers for sustained growth.

(With inputs from agencies.)