Retail Car Sales Grow In April 2025 But Only Due To Rural Demand

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.