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Informist, Monday, May 5, 2025

 

--FADA: Apr total vehicle retail sales 2.29 mln units, up 3% on year 

--FADA: Apr passenger vehicle retail sales 349,939 units, up 1.6% on yr 

--FADA: Apr 2-wheeler retail sales 1.69 mln units, up 2.3% on year 

--FADA: Apr CV retail sales 90,558 units, down 1.1% on year 

--FADA: Apr 3-wheeler retail sales 99,766 units, up 24.5% on year 

--FADA: Apr tractors retail sales 60,915 units, up 7.6% on year 

--FADA: See 2-wheeler sales plateauing amid rising living costs 

--FADA: Financiers seek higher CIBIL scores, higher down payments from buyers 

 

MUMBAI - Automobile retail sales in India grew 3% on year in April, driven by growth in most segments, except commercial vehicles, the Federation of Automobile Dealers Associations said Monday. "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," C.S. Vigneshwar, president of the federation, said in a press release. 

 

Retail sales volume in April increased to 2.29 million from 2.22 million a year ago and from 2.13 million in March. Of this, retail sales of two-wheelers grew 2.3% on year to 1.69 million on stable demand amid mixed headwinds. Urban demand for this category remained robust, supported by new-model introductions, though high financial costs capped the growth, the federation said. 

 

The market share of Hero MotoCorp Ltd. and Bajaj Auto group as two-wheeler original equipment manufacturers decline in April from the corresponding month a year ago, FADA said. Hero MotoCorp's market share declined to 30.3% at 511,687 units in April from 31.1% a year ago and that of Bajaj Auto fell to 10.85% from 11.90%, as per FADA data. On the other hand, the market share of TVS Motor Co. Ltd. increased to 18.34% in the reporting month from 17.04% a year ago. 

 

Sales volume of three-wheelers grew the most, up nearly 25% on year to 99,766 units in the reporting month and 0.4% higher from 99,376 units in March. From a year ago, the market share of Bajaj Auto in the three-wheeler space declined to 32.7% in April from 37.4% and that of Atul Auto Ltd. fell to 2% from 2.2%. On the other hand, Mahindra & Mahindra Ltd.'s market share increased to 6.3% from 4.8% and that of TVS Motor rose to 3.2% from 2%.  

 

Retail sales of the second-biggest segment--passenger vehicles--increased 1.6% from a year ago to 349,939 units in April despite limited model introductions, but declined 0.2% from 350,603 units in March. Sustained demand for sport utility vehicles underpinned volumes even as entry-level customers remained cautious, FADA said, adding that the federation continues to advocate a 21-day inventory norm at dealerships to enhance cost efficiency. Inventory days rose to approximately 50 amid cautious consumer sentiment which tempered enquiry-to-sale conversions, it said. 

 

On the other hand, commercial vehicles sales fell more than 1% from the year-ago period to 90,558 units during the month due to price hikes by original equiment manufacturers and flat growth in freights. FADA expects this category's sales volume growth to be flat, weighed by a high-base effect, slower e-commerce activity, and intensifying competition from electric three-wheelers, the federation said. 

 

Tractor retail sales during the month increased nearly 8% on year to 60,915 units, but fell almost 18% from 74,013 units in the previous month. 

 

OUTLOOK

The federation is cautiously optimistic about retails sales in the near term. It expects the two-wheeler category's sales growth plateauing amid rising living costs. Financiers are tightening customer-level credit criteria, such as higher requirement on Credit Information Bureau (India) Ltd. and mandates on down payments despite broader banking-system liquidity, it said. FADA also expects the demand to be steady in commercial vehicles amid higher competition from electric three-wheelers, while schemes from original equipment manufacturers could provide some relief. 

 

However, the India Meteorological Department's forecast of an above-normal southwest monsoon bodes well for rural incomes, farm sector growth, and downstream demand, while a well-distributed rainy season is critical to containing food inflation, FADA said. Agricultural cycle is concluding on a strong note in May, driven by healthy crop prices and robust mandi procurement. However, inflationary pressures are tempering discretionary purchases and household spending has outpaced growth in income, it said.  End

 

Reported by Anjana Therese Antony

Edited by Vandana Hingorani

 

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