Auto sales decline by 7% in Feb 2025; PV sales skid 10% YoY: FADA
The Two-wheeler vehicle sales saw a 6 percent dip in February 2025 year-on-year while passenger vehicle sales skid by 10 percent in the same month.
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Auto sales in February 2025 witnessed a 7 percent decline, reflecting "Flat to de-growth sentiment", according to the data by the Federation of Automobile Dealers Associations of India (FADA).
The Two-wheeler vehicle sales saw a 6 percent dip in February 2025 year-on-year while passenger vehicle sales skid by 10 percent in the same month.
In February 2025, 13.53 lakh units of 2-wheeler were sold compared to 14.44 lakh units in the same period in 2024.
Additionally, 3.03 lakh passenger vehicles were sold in February 2025 versus 3.38 sold in the same period last year.
Sales of commercial vehicles dropped to 82,763 units at 8.6 percent in February 2025, the data added.
According to the monthly vehicle data by FADA, the two-wheeler sales declined 7.38 percent in urban areas and 5.5 percent in rural regions in February 2025. In the case of passenger vehicles, the entry-level demand remained subdued, with dealers citing delayed conversions and challenging targets.
However, the dealers have a positive outlook for March 2025, predicting 45 percent growth, while 40 percent foresee flat performance and 14 percent anticipate de-growth.
The apex body of the automobile retail industry added that multiple festivals, such as Holi, Gudi Padwa, Navratri, and year-end depreciation benefits could lift retail sentiment across 2W, PV, and CV segments.
"February witnessed a broad-based downturn across all categories, a trend that was anticipated in our previous survey which projected a ‘Flat to De-growth’ sentiment for the month. Overall, the market closed with a -7% YoY decline, with 2W, 3W, PV, Trac, and CV falling by 6%, 2%, 10%, 14.5% and 8.6% respectively. During the month, dealers began expressing concerns about inventory being pushed to them without their consent. While such initiatives may serve broader business objectives, it is critical to align wholesale allocations with genuine demand to protect dealer viability and ensure healthy inventory management," CS Vigneshwar, FADA President said.
Additionally, the Motor Vehicle Road Tax Collection also dropped by 7.4 percent to Rs 6,340 crore in February 2025 compared to Rs 6,843 crore in Feb 2024.
