Passenger Vehicle Retail Sales Rebound in March, Says FADA
The growth in March was a significant turnaround after months of subdued performance in the PV segment by automakers.
Pune: Passenger vehicle (PV) retail sales registered an impressive 6.26 per cent year-over-year growth in March 2025, clocking 350,603 units compared to 329,946 units in March, the Federation of Automobile Dealers Associations or FADA said on Monday.
The growth in March was a significant turnaround after months of subdued performance in the PV segment by automakers.
While February sales had dropped 10.34 per cent year-over-year, January's sales at a positive 15.53 per cent growth were inflated due to registrations spilling over from December purchases for 2025 model year advantages.
"The PV segment benefited from discounting, forthcoming price hikes, and festive buying," CS Vigneshwar, FADA President said. "New model launches and better variant availability also aided growth," he noted.
However, FADA continued to highlight inventory challenges in the PV segment. Dealer stock levels, while improving from their peak of 70-75 days in August-September 2024, still remained elevated at 50-55 days, it noted.
"Many dealers highlighted unrealistic targets, liquidity challenges, and regional pockets of low demand, resulting in PV inventories rising," Vigneshwar pointed out.
Sales of commercial vehicles last month also rose by 3 per cent at 94,764 units, up from 92,292 units sold by automakers in March last year.
In the fiscal year 2025, PV retail sales jumped 5 per cent at 41,53,432 units as against 39,60,602 units sold in the previous year.
Total automobile sales across categories also rose 6.46 per cent at 2,61,43,943 units, up from 2,45,58,437 units automakers sold last financial year, FADA said.
Similarly, two-wheelers sales ended the year at 7.71 per cent at 1,88,77,812 units, up from 1,75,27,115 units, falling short of the hoped-for double-digit increase, FADA said.
However, commercial vehicles came in nearly flat at 0.17 per cent at 10,08,623 units as against 10,10,324 units sold last year, underscoring the impact of unpredictable weather, constrained financing, and shifting consumer sentiment.
Industry analysts suggest that while March's performance is promising, sustained recovery will depend on automakers managing supply more prudently.
