Geopolitical tensions, US tariff effects to weigh on consumer sentiments: FADA

EVOLVING geopolitical tensions and potential spillover from US tariff measures could temper consumer sentiment in the near term, warned the Federation of Automobile Dealers Associations (FADA) on Monday as retail auto sales fell sharply by more than 9% month-on-month in June 2025.

- ENS ECONOMIC BUREAU @ New Delhi

FADA also stated that challenges in securing rare-earth materials have stalled component production, further constraining supply and retail volumes.

FADA added that as the industry enters July 2025, dealer sentiment appears tilted towards slowdown—flat and de-growth expectations (42.8% and 26.1%) exceed growth forecasts (31.1%). Similarly, booking pipeline traction remains uneven—only 21% of 2W, 38% of PV and 32% of CV dealers report healthy enquiry flows.