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.

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Kia India, a leading mass premium carmaker in the country, has reported strong domestic sales in September 2025, reaching 22,700 units, up 15.8 percent compared to August 2025.

The company attributes the sales surge to a combination of market factors, specifically the recent GST reforms and the start of the festive season. The streamlined taxation framework is noted for having enhanced affordability and strengthened overall customer sentiment.

Kia India stated that its entire product portfolio, including the Sonet, Carens, Carens Clavis, Seltos, Syros and Carnival, continued to resonate with customers during the month.

Atul Sood, Senior VP, Sales & Marketing, Kia India, said, “September 2025 marks a significant milestone for Kia India, driven by the positive impact of GST reforms and the festive season demand. The streamlined taxation framework has enhanced affordability and encouraged stronger customer engagement across our product portfolio. This robust growth reflects the enduring trust customers place in our brand, the strength of our innovative and feature-rich lineup, and our commitment to delivering superior mobility solutions.”

Kia India also reported strong year-to-date (YTD) sales, with 206,582 units sold in 2025 so far. This represents a 7.2 percent growth compared to the 192,690 units sold during the same period last year.

In addition the company exported 2,606 units in September 2025.

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Japanese automaker Nissan Motor India (NMIPL) has recorded consolidated sales of 10,500 units in September 2025, reflecting a 9.3 percent YoY growth over September 2024.

Domestic wholesale sales totalled 1,652 units, while exports reached 8,872 units, including 1,120 units to South Asia, marking Nissan's highest-ever sales in the region.

During Q2 FY2026, the company also launched a segment-first 10-year warranty for the New Nissan Magnite, which drove sales for the month.

Saurabh Vatsa, Managing Director, Nissan Motor India, said, “September was an exciting month for Nissan Motor India. The GNCAP 5-Star rated new Nissan Magnite with a segment-first 10-year extended warranty continues to resonate strongly with our customers and the recent GST-driven price benefit helped accelerate deliveries."

"We would like to thank our customers for an over-whelming response to the recently introduced Kuro Special Edition and the exciting new Metallic Grey colour brought to market on strong customer demand,” he added.

The company is aggressively expanding its dealership network, targeting 180 dealerships by end-FY2026 and 250 by end-FY2027. Nissan is preparing for new launches, including the upcoming all-new 7-seater B-MPV, 5-seater C-SUV and 7-seater C-SUV.

"With our dealership expansion now rapidly underway, we are focused on enhancing customer accessibility and delivering an exciting product portfolio, including the upcoming all-new 7-seater B-MPV, 5-seater C-SUV & 7-seater C-SUV,” concluded Vatsa.

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Skoda Auto India has reported exceptional growth for the Q3 CY2025, registering a 110 percent YoY increase in sales over the same period last year. The brand sold a total of 17,161 cars between July and September, marking a record-breaking performance.

The company said its momentum was highlighted by robust monthly sales in September, where Skoda Auto India sold 6,636 cars, marking 110 percent YoY growth.

The company stated that the sales surge was ‘fuelled by the sustained demand for the Kylaq, along with steady contributions from the Kushaq, Slavia and Kodiaq.’

Ashish Gupta, Brand Director, Skoda Auto India, said, “The festive season, coupled with the simplified GST framework, has created a strong tailwind across the industry. Our September and Q3 results reflect the strong customer response to our product portfolio, particularly the Kylaq, which has become a true growth driver for us. With our growing network and value-driven ownership experience, we remain focused on building deeper connections with customers while accelerating Skoda’s growth journey in India.”

The company stated that its success in 2025 is largely anchored by its product offensive and network expansion including the Kylaq, which crossed 34,500 units in sales since launch. Year to date sales, the company achieved total sales of 53,355 units. Furthermore, to celebrate 25 years in India, Skoda has expanded its customer touchpoints to over 315 locations across 177 cities.

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Maruti Suzuki India, the country's largest passenger vehicle manufacturer, has announced its wholesales for September 2025 and Q2 FY2026.  

The company sold 132,820 vehicles in September, which was down 8 percent, as compared to 144,962 units sold for the same period last year. The major decline in sales was witnessed in its mini (-30%) and SUV portfolio (-21%), while the compact segment grew by 11 percent.

Maruti Suzuki India attributed the decline in sales to ‘logistical constraints towards the last part of the month.’

In terms of exports, the company clocked its highest-ever monthly sales with 42,204 units last month, as compared to 27,728 units a year ago.

The automaker stated that with the revision in GST rates, the company has seen positive consumer sentiment, which reflected in its highest-ever deliveries of 165,000 units in the first 8 days of the ongoing Navratri festivals.

On the other hand, for Q2 FY2026, the company reported sales of 795,556 units, down 6 percent YoY, as compared to 844,614 units last year. Barring the compact vehicle segment, all segments reported a decline in sales.

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