February 2025 auto retail gross sales drop 7% led by 14.5% fall in tractor gross sales, 10% drop in PV retail

Representational picture solely. File
| Photograph Credit score: The Hindu

Auto retail gross sales in February 2025 fell 7% Yr over Yr (YoY) with all segments registering damaging progress on YoY foundation, as per information launched by Federation of Car Sellers Affiliation (FADA) on Thursday (March 6, 2025.)

The 2-wheelers (2W), three-wheelers (3W),  passenger autos (PV), tractors and industrial autos (CV) segments fell by 6%, 2%, 10%, 14.5% and eight.6% respectively.

The 2W section, regardless of an 8.57% Yr To Date (YTD) progress, reported YoY retail gross sales drop of 6.33% in February 2025. 

“City areas declined -7.38% versus a milder -5.5% drop in rural markets, aided by higher agricultural sentiment and marriage-season demand,” FADA mentioned.

“Key challenges included stock imbalances, aggressive pricing, weak shopper sentiment and restricted finance availability,” it added.

The 4% YTD progress within the PV section was overshadowed by a steep -10.34% YoY fall in February. “Entry-level demand remained significantly comfortable, with sellers citing delayed conversions and difficult targets,” FADA mentioned.

Stock ranges stood at 50-52 days, underscoring the significance of aligning wholesale targets with precise retail potential. The CV section with a YTD decline of -0.5% noticed an -8.6% YoY drop in February retail gross sales.

Sellers reported weak gross sales in transportation sector, tighter finance norms and pricing pressures — particularly affecting bulk orders and institutional contracts.

Some aid got here from strong tipper bookings, pushed by elevated authorities spending and regular provides. Cautious optimism persists for March, as sellers realign targets to present demand.

FADA President C.S. Vigneshwar mentioned, “February witnessed a broad-based downturn throughout all classes, a pattern that was anticipated in our earlier survey which projected a ‘Flat to De-growth’ sentiment for the month.”

“Throughout the month, sellers started expressing considerations about stock being pushed to them with out their consent. Whereas such initiatives might serve broader enterprise targets, it’s crucial to align wholesale allocations with real demand to guard vendor viability and guarantee wholesome stock administration,” he added.

“The near-term outlook for auto retail in March 2025 is cautiously optimistic, with vendor expectations indicating that almost 45% foresee progress, 40% anticipate flat efficiency and solely 14% anticipate de-growth,” he mentioned. 

He mentioned the convergence of a number of festivals — starting from Holi and Gudi Padwa to the onset of Navratri — and year-end depreciation advantages ought to present a much-needed enhance to automobile purchases.