Retail Car Sales Grow In April 2025 But Only Due To Rural Demand
As many as 3,49,939 four-wheelers were registered in April 2025, as against 3,44,594 units in the year-ago period—a growth of just 1.55% year-on-year.
Car sales in India grew last month, but only due to rural demand, underscoring the slowdown seen in discretionary spending in urban areas.
As many as 3,49,939 four-wheelers were registered last month, as against 3,44,594 units in the year-ago period, according to VAHAN data collated by the Federation of Automobile Dealers Associations. Retail car sales shrunk 0.52% in urban areas, but rose 5.03% in rural areas, according to FADA research. The inventory stood at 50 days.
“This performance reflects a discount-led market and elevated inventories…amid cautious consumer sentiment that tempered inquiry-to-sales conversion,” CS Vigneshwar, president of the dealers lobby, said in a statement on Monday. “Sustained SUV demand underpinned volumes even as entry-level customers remained cautious, underscoring the need for OEMs to recalibrate production and reduce stock levels to mitigate deeper discounts and carrying cost at the dealerships.”
“FADA continues to advocate a 21-day inventory norm at dealerships to enhance market responsiveness and cost efficiency.”
Overall, however, India’s auto industry grew last month.
Two-wheeler sales up 2.25% YoY at 16,86,774 units.
Three-wheeler sales up 24.51% YoY at 99,766 units.
Four-wheeler sales up 1.55% YoY at 3,49,939 units.
Tractor sales up 7.56% YoY at 60,915 units.
Truck, bus sales down 1.05% YoY at 90,558 units.
A total of 22,87,952 vehicles were sold in April, as against 22,22,463 units in the year-ago period, clocking a growth of 2.95% year-on-year.
