February Auto Retail Sales In The Negative, Dealers Express Concern Over Inventory Push Says FADA

FADA

The Federation of Automobile Dealers Association (FADA), the apex body representing the automotive dealers in the country, has shared the retail sales data for February 2025, which saw the overall sales dropping 7.19 percent YoY at 1.89 million units, as compared to 2.04 million units for the same period last year.

Interestingly, the degrowth was observed across all segments, with tractors seeing the highest decline at 14.5 percent YoY, followed by passenger vehicles at 10.34 percent and commercial vehicles at 8.6 percent YoY.

C S Vigneshwar, President, FADA, stated, “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. 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.”

The two-wheeler segment saw urban sales decline higher than its rural counterparts, which performed better on the back of positive agricultural sentiments and seasonal marriage demand.

The slowdown in demand for two-wheelers was attributed to inventory imbalances, aggressive pricing adjustments (notably post-OBD-2B), weak consumer sentiment, lower enquiry and limited finance availability. Dealers also expressed concerns about slow-moving models and external economic pressures, such as liquidity constraints and inflation, further intensifying these challenges.

Demand for entry-level passenger vehicles continued to remain low, while delayed conversion, challenging targets and excessive inventory built-up was also a factor affecting the PV segment.

“Dealers pointed to a challenging commercial environment, with weak sales in transportation sector, tightening finance norms and pricing pressures delaying customer decisions – particularly in bulk orders and institutional contracts. While robust order bookings, notably in the tipper segment driven by increased government spending and steady supplies offered some relief, the prevailing negative sentiment and structural market shifts call for a more adaptive approach. There is cautious optimism that the market will improve in March as dealers recalibrate their targets to better align with current demand,” added Vigneshwar.

Going forward, the industry body maintains a cautious optimism for March. Scepticism around impact of declining stock market, consumer confidence, reduction in discretionary spending may act as headwinds. On the other hand, year-end depreciation, multiple festivals such as Holi, Gudi Padwa and onset of Navratri may act as tailwinds.

 

Category Feb '25 Feb '24 Change (in units) Change (in %) Jan '25 Change (in %)
YoY YoY MoM
Two-wheeler 1,353,280 1,444,674 -91,394 -6.33% 1,525,862 -11.31%
Three-wheeler 94,181 96,020 -1,839 -1.92% 107,033 -12.01%
E-Rickshaw (P) 32,361 36,548 -4,187 -11.46% 38,830 -16.66%
E-Rickshaw with Cart (G) 6,401 4,442 1,959 44.10% 5,760 11.13%
Three-wheeler (Goods) 10,829 11,030 -201 -1.82% 12,036 -10.03%
Three-wheeler (Passenger) 44,522 43,932 590 1.34% 50,322 -11.53%
Three-wheeler (Personal) 68 68 0 0.00% 85 -20.00%
Passenger Vehicle 303,398 338,390 -34,992 -10.34% 465,920 -34.88%
Tractor 65,574 76,693 -11,119 -14.50% 93,381 -29.78%
Commercial Vehicle 82,763 90,551 -7,788 -8.60% 99,425 -16.76%
LCV 45,742 49,370 -3,628 -7.35% 56,410 -18.91%
MCV 6,212 6,561 -349 -5.32% 6,975 -10.94%
HCV 26,094 29,483 -3,389 -11.49% 30,061 -13.20%
Others 4,715 5,137 -422 -8.21% 5,979 -21.14%
Total 1,899,196 2,046,328 -147,132 -7.19% 2,291,621 -17.12%

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    Hyundai Motor India Introduces Wireless Adapter For Hyundai Alcazar To Support Apple CarPlay And Android Auto

    Hyundai Alcazar

    Hyundai Motor India (HMIL), a leading passenger vehicle manufacturer, has introduced a new ‘Wired to Wireless Adapter’ for the Hyundai Alcazar SUV.

    The adapter will enable seamless wireless Apple CarPlay and Android Auto access for Alcazar (Prestige, Platinum and Signature variant) customers, which will allow them to effortlessly use their phone applications on the infotainment system without using a cable.

    Tarun Garg, Whole-Time Director and Chief Operating Officer, Hyundai Motor India, said, "At Hyundai Motor India, our focus is to empower customers by providing best-in-class technology that elevates their driving experience. The introduction of our ‘Wired to Wireless Adapter’ is a significant step in meeting the expectations of today’s tech-savvy customers, who expect seamless connectivity throughout their journeys. We believe this innovation will enhance the in-car entertainment experience of our customers."

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      Honda Cars India Exports Counters Domestic Sales Slowdown In FY2025

      Honda Cars India

      Honda Cars India (HCIL), a leading manufacturer of premium cars in India, has announced its wholesales for FY2025. 

      The company sold a total of 126,151 units, a marginal growth of 1.59 percent YoY, as compared to 124,173 units sold in FY 2024.

      Of this, domestic sales came at 65,925 units, down 23.8 percent YoY, while exports at 60,226 units, grew by 60 percent YoY.

      At present, the company’s product portfolio for India includes the Honda Amaze sedan, Honda Elevate SUV and Honda City sedan. The company’s sales performance can be attributed to the fact that, Honda Cars India currently lacks a wider SUV portfolio, which has been primarily the sales driver for most automakers in the country.

      Kunal Behl, Vice-President, Marketing & Sales, Honda Cars India, said, “HCIL sales performance in FY2024-25 has been in line with the ongoing tough business environment. While on domestic front, the industry faced challenges in creating fresh demand from the market which was also reflected in HCIL domestic sales, we recorded our highest ever export volumes led by strong export business of Elevate to Japan. The recent launch of all-new Amaze has been well received from the market strengthening our position in the family sedan segment.”

      “While demand creation may still present challenge in the new fiscal year, we remain optimistic and believe our commitment to customer satisfaction will enable us to navigate the market effectively and continue driving positive results," he added.

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        Hyundai Motor India Reports Marginal Decline In FY2025 Sales At 762,052 Units

        Hyundai India

        Hyundai Motor India (HMIL), a leading passenger vehicle manufacturer, has announced its wholesales for FY2025 with 762,052 units sold, a marginal decline of 2 percent YoY.

        This includes 598,666 units sold in domestic market, down 2.61 percent YoY and 163,386 units exported, a flat growth as against 163,155 units for the same period last year.

        Tarun Garg, Whole-time Director and Chief Operating Officer, Hyundai Motor India, said, “Solidifying our position further in India, HMIL continued its rein as the second largest passenger vehicle OEM in FY2024-25, thanks to the unparalleled trust of our customers on brand Hyundai."

        "Our versatile SUV line-up grew stronger this financial year with the launch of the Hyundai Creta Electric - our first indigenous EV and also the bold new Hyundai Alcazar. India’s favourite SUV, the new Hyundai Creta continues to build on its popularity, by becoming India’s No.1 SUV with sales of 52,898 units in Jan-March quarter of FY2024-25. HMIL further set industry benchmarks by surpassing the milestone of 2.5 million SUV sales and 1.5 million Creta sales since inception (domestic + exports)," he added. 

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          Skoda Kylaq Powers Czech Carmakers Highest India Monthly Sales In March 2025

          Skoda India

          Czech automaker Skoda Auto India, which is celebrating its silver jubilee (25-years) in the country, has reportedly clocked its best-ever monthly sales with 7,422 units sold in March 2025.

          The company attributes the sales performance on the popularity of its Kylaq SUV, which has enabled it to reach out to a wider sect of consumers.

          Petr Janeba, Brand Director, Skoda Auto India, said, “With the launch of the all-new Kylaq, we committed to a ‘New Era’ in our India journey. The 7,422 cars we sold in March 2025 is testament to this journey taking shape, and is also the result of sustained planning, efforts and a strategy aimed at democratising European technology on Indian roads. The customer feedback highlights that Kylaq comes with an exceptional price-value proposition, taking comfort, space and safety from a segment higher, into the sub-4-metre SUV segment. To enable more customers and celebrate the Kylaq success, we decided to extend the introductory pricing until the end of April.”

          Launched in November 2024 and deliveries beginning January 2025, the Skoda Kylaq

          is Skoda’s Auto India’s first sub-4-metre SUV. The company is ramping up production of the Kylaq SUV with a target to deliver over 15,000 units towards active bookings by end-May. Furthermore, the company has also outlined an ambitious target to have 350 touchpoints in 2025, rapidly scaling from over 280 touchpoints at present.

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