Automobile Sales Data: How FY 2024–25 and March 2025 Shaped Up

FY 2024–25: Modest Growth, Rural Markets Lead the Way

The FY 2024–25 automobile sales data shows the industry had a stable, if not stellar, year. Overall retail sales rose by 6.46%, primarily driven by stronger demand from rural areas and steady EV adoption.

Here’s a quick breakdown:

• Passenger Vehicles (PVs): up 4.87%
• Two-wheelers (2Ws): saw higher growth at 7.71%
• Commercial Vehicles (CVs): remained flat, dipping slightly by 0.17%

What stood out this year was the performance in rural regions. PV sales in smaller towns and villages climbed 7.93%, clearly outpacing the 3.07% growth seen in urban areas. The same pattern followed for two-wheelers — 8.39% growth in rural markets compared to 6.77% in cities.

March 2025: A Slight Drop, but No Panic

March was a mixed bag. Retail sales dipped 0.68% year-on-year, but compared to February, they were up 11.99% — a typical year-end jump fueled by discounts, last-minute purchases, and financial year close-outs.

Electric vehicles continue to see momentum. EVs accounted for 7.8% of total retail auto sales during the year, and their share rose to 9.9% in March. While the pace of growth has eased, the shift toward EVs remains in motion.

Inventory Build-Up Raises Eyebrows

One concern for the industry is rising inventory, especially in the PV segment. Stock levels at dealerships have reached 50–55 days, which could lead to discounting pressure if demand doesn’t improve soon.

Key Stats from FY 2024–25: A Quick Look

Source: FADA Press Release

Final Thoughts

The FY 2024–25 automobile sales data tells a story of steady, if not spectacular, growth. Rural demand helped offset the urban slowdown, two-wheelers bounced back well, and EVs are gaining ground. Still, rising stock at dealerships and the March dip mean the industry must stay cautious heading into the new fiscal year.