The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for May'25.
According to FADA, the month of May registered a modest 5% year-on-year growth overall. Segment-wise, 2W, 3W, and Trac led the way with gains of 7.3%, 6.2%, and 2.7% respectively, while PV, CE, and CV declined by 3.1%, 6.3%, and 3.7%.
In the 2W category, retail volumes fell 2.02% M-o-M but still posted a robust 7.31% Y-o-Y increase. Dealers attribute this resilience to a higher number of auspicious marriage days, a strong Rabi harvest, and pre-monsoon demand— especially in semi-urban and rural markets.
Passenger-vehicle retails contracted by 13.6% M-o-M and 3.1% Y-o-Y, while inventory days—which had hovered around 50—have edged up to approximately 52–53 days. Entry-level models were hardest hit as constrained financing and subdued consumer sentiment compounded the slowdown.
Commercial-vehicle retails declined by 11.25% M-o-M and 3.71% Y-o-Y amid muted freight cycles, tight liquidity, and adverse geopolitical sentiment. While bus sales offered some relief, passenger carriers and commodity-linked segments (cement, coal) saw sharp de-growth due to delayed financing and softening TIV.
Channel dynamics for June reflect this cautious optimism: monsoon-driven rural traction and festival pull-through should sustain 2W activity, yet persistent financing constraints and selective OEM price adjustments may temper incremental gains.
PV dealers report elevated inventory days and legacy product portfolios, limiting retail conversions despite localized Rath Yatra uplifts.
In the CV segment, inventory churn remains elevated as OEMs and Dealers pre-empt June ’25 A/C-cabin regulations, while freight demand in coal, cement, and mining continues to be muted by liquidity bottlenecks and early rains.
To navigate this lean yet resilient month, OEMs and financiers must synchronize production planning with ground-reality demand signals, deploy calibrated channel incentives, and secure adequate working-capital support.
Collectively, these factors point to a cautiously optimistic near-term outlook for Auto Retail in June ’25, as per FADA.