FADA May 2025 Commercial Vehicle Sales Report

New Delhi, June 6, 2025: The Federation of Automobile Dealers Associations (FADA) released retail vehicle data for May 2025, with the commercial vehicle (CV) segment reflecting a YoY contraction of 3.71%. Sales dropped 11.25% month-on-month, pointing to broad demand-side stress across freight and passenger-carrying categories.

Muted transport cycles and tight liquidity flows impacted the segment. Meanwhile, inventory surged ahead of the upcoming mandatory air-conditioned cabin regulation for driver welfare effective from June 2025. Bus sales cushioned the decline marginally, but overall fleet activity remained subdued.

CV Segment Performance

Overall CV retails dropped 3.71% YoY. OEMs and dealers had already pushed wholesales in April to meet pre-regulatory stocking goals, leaving May relatively soft.

CV Category	May ’25	Apr ’25	May ’24	MoM %	YoY %
Total CV	75,615	85,203	78,530	-11.25%	-3.71%
LCV	44,419	46,721	45,870	-4.93%	-3.16%
MCV	6,772	7,089	6,359	-4.47%	+6.49%
HCV	24,382	31,330	26,234	-22.18%	-7.06%
Others	42	63	67	-33.33%	-37.31%

Regional Shift: Urban CV sales weaken more than rural

Urban CV retail dropped 13.5% MoM, while rural fell 8.78%, showing broader pain across haulage-dependent sectors like coal and cement. Geopolitical unease and early monsoon arrivals further slowed demand.

CV Retail	Urban	Rural	Total
MoM %	-13.50%	-8.78%	-11.25%
YoY %	-1.14%	-6.25%	-3.71%

Market Share: Tata Leads, Ashok Leyland Gains Stability

Tata Motors led the CV segment with a 34.52% share, though it sold fewer units YoY. Mahindra & Mahindra followed closely with 26.21%, combining core and last-mile verticals. Ashok Leyland held firm at 18.20%, aided by its medium-duty portfolio.

OEM	May ’25 Units	Market Share
Tata Motors Ltd	26,100	34.52%
Mahindra & Mahindra Group	19,816	26.21%
Ashok Leyland Ltd	13,763	18.20%
VE Commercial Vehicles	6,734	8.91%
Force Motors	2,088	2.76%

Fuel Mix in CVs: Diesel Dominates, EV Share Rises

CVs stayed predominantly diesel-run at 83.05%. However, EV adoption rose to 1.35%, from 0.7% a year ago, driven by electric light carriers and urban bus deployments.

Fuel Type	May ’25 Share
Diesel	83.05%
CNG/LPG	11.55%
Petrol/Ethanol	3.99%
Electric	1.35%
Hybrid	0.05%

Three-Wheelers Post Growth: Electrification Drives Momentum

Three-wheeler sales grew 6.28% YoY, reaching 1,04,448 units. The electric shift accelerated, with EVs comprising 63.21% of the total volume. This category benefited from low operating costs and state-level e-mobility policies.

Sub-Type	May ’25 Units	YoY Growth
E-Rickshaw (Passenger)	40,635	+2.87%
E-Rickshaw with Cart (Goods)	7,972	+44.08%
3W Goods Carrier	10,272	+3.41%
3W Passenger Carrier	45,429	+5.09%

Bajaj Auto retained dominance in 3W retail with 33.12% market share.

Outlook: Regulation, Monsoon, and Repo Rate to Shape June

• Monsoon at 106% of LPA expected to boost rural vehicle demand.
  
• RBI’s expected 25 bps rate cut may improve borrowing capacity for buyers and dealers alike.
  
• CV outlook remains cautious due to early monsoon impact on mining and stalled freight movement.
  
• Dealers must manage A/C-cabin pre-regulatory stock and maintain liquidity discipline.
  
• OEMs advised to align production closely with real-time channel movement.
  

Conclusion

May 2025 saw pressure on commercial vehicle retail, with macro-freight weakness, liquidity drag, and regulatory stocking distorting near-term trends. Three-wheeler performance provided some lift, but the road ahead for CVs depends on freight recovery, rural growth, and policy clarity.

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