Retail car sales in India scaled the four-million mark for the first time in fiscal 2025, but the outlook hereon is hazy at best.
The number of cars registered on the government's VAHAN website rose 4.87% over the year-ago period to 41,53,432 units in the fiscal ended March 31, according to data collated by the Federation of Automobile Dealers Associations, or FADA. At 7.93%, the growth rate was higher in rural areas. In urban, it stood at 3.07%.
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Maruti Suzuki India Ltd., the country's largest carmaker, held on to its 40% market share even as rivals Hyundai Motor India Ltd., Tata Motors Ltd. and Mahindra & Mahindra Ltd. jostled for the No.2 position with less than 50,000 units separately.
Two-wheeler sales grew 7.71% year-on-year to 1,88,77,812 units, falling short of the double-digit growth expectations. Sales of three-wheelers rose 4.54% year-on-year but that of commercial vehicles declined 0.17%.
“FY25 truly showcased how adaptable and resilient India's auto retail sector can be,” FADA President CS Vigneshwar said in a statement. “Our initial forecast of low single-digit growth, around 5%, for passenger vehicles ended up hitting the mark almost perfectly.
“A key highlight for the year was the performance in rural areas.”
But as April dawns, auto dealers across India are bracing for a shaky start to FY26.
“IMD's warning of intense heatwaves looms over consumer footfall and infrastructure activity, while renewed tariff tensions on the international stage add market volatility and rattle buyer sentiment,” FADA stated. “Despite these headwinds, nearly half of surveyed dealers still expect April sales to be flat and over a third foresee some growth—driven by regional festivals and the marriage season.”
Yet, the picture is far from rosy. Nearly 60% of dealers across all segments are reporting weak booking pipelines, signalling a fragile foundation on which any optimism must rest.
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