FADA April 2025 Retail Data: CV Sales Dip Despite Market Growth

The Indian automotive retail market began FY2025 on a modest note, with overall vehicle retails posting a 3% year-on-year (YoY) growth. However, this growth was unevenly distributed across segments. While 3-Wheelers and Tractors saw substantial increases, the Commercial Vehicle (CV) segment was the only major category to witness a decline.

Commercial Vehicles (CV): Declining Momentum

Performance Overview

• YoY Change: –1.05%
  
• Month-on-Month (MoM) Change: –4.44%
  

The CV segment faced a subdued start to the new fiscal year. A combination of original equipment manufacturer (OEM)-led price hikes, flat freight rates, and stable fleet utilization contributed to the downturn. Dealers reported that advance purchases made in March led to high carryover stock in April. Additionally, holiday calendars during the month delayed customer decision-making, especially in the Small Commercial Vehicle (SCV) cargo segment.

Though financing availability remained largely steady across the board, the report highlighted the need for stronger financial support for first-time users, especially in the CV segment, to stimulate fresh demand.

3-Wheelers: Strong Double-Digit Growth

Performance Overview

• YoY Change: +24.5%
  

The 3-Wheeler segment emerged as a standout performer, registering a robust double-digit YoY growth in April 2025. This surge was driven by increased demand during the festive occasions like Chaitra Navratri, Akshay Tritiya, Baisakhi, Vishu, and Bengali New Year, which collectively improved footfalls and conversions at dealerships.

The segment's growth was also bolstered by:

• Rising urban and rural mobility needs.
  
• Stable financing options.
  
• Continued preference for both passenger and cargo 3-wheelers in cost-sensitive markets.
  

Tractors: Consistent and Healthy Growth

Performance Overview

• YoY Change: +7.5%
  

Tractors maintained steady momentum in April 2025, posting a 7.5% YoY increase. This segment benefitted from multiple factors:

• Seasonal rural festivities and favorable agricultural outlooks.
  
• Continued infrastructure and rural development projects.
  
• Strong rural liquidity, encouraging new purchases.
  

The segment appears well-positioned to sustain growth with stable demand across both agricultural and commercial applications.

Conclusion

While the overall auto retail market stayed in positive territory in April 2025, Commercial Vehicles stood out as the lone underperformer, requiring targeted policy and financing interventions. In contrast, 3-Wheelers and Tractors delivered strong performances, reflecting their essential role in India’s transport and agricultural ecosystems. Going forward, OEMs and dealers in the CV segment may need to address pricing strategies, product gaps, and conversion cycles to recapture growth momentum.

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