Auto Retail Sales Slow to 6.5% in FY25, May Face Headwinds

Dealers concerned about ongoing tariff war and its potential impact on sales in India

- SHINE JACOB

Automobile retail sales grew 6.5 percent in financial year 2024-25 (FY25), driven primarily by a 5 percent rise in passenger vehicle (PV) sales, an 8 percent increase in two-wheeler numbers, and a 5 percent uptick in commercial vehicle (CV) sales.

This compares to a growth of 10 percent for the industry in the previous financial year (FY24).

However, concerns emerged in March, as retail sales declined for the second consecutive month—down 0.7 percent compared to March 2024.

The fall was attributed to a 2 percent slide in two-wheeler sales, a 6 percent drop in three-wheeler sales, and a 6 percent decline in tractor sales, according to data from the Federation of Automobile Dealers Associations (Fada).