In February 2025, India’s automobile retail sector experienced a 7 per cent decline in sales, totaling 18,99,196 units. Passenger vehicle sales fell b
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The Indian automobile retail sector witnessed a 7 per cent decline in February, 2025 according to the latest data from the Federation of Automobile Dealers Associations (FADA). Total retail sales across all vehicle categories stood at 18,99,196 units, down from 20,46,328 units in the same period last year.
FADA President C S Vigneshwar highlighted that February saw a broad-based downturn across all categories, with dealers raising concerns over excessive inventory being pushed onto them. “It is critical to align wholesale allocations with genuine demand to protect dealer viability and ensure healthy inventory management,” he stated.
Passenger Vehicle Sales Drop by 10%
Passenger vehicle (PV) retail sales fell 10 per cent year-on-year to 3,03,398 units in February. Dealers attributed this to weak market sentiment especially in the entry-level segment, delayed customer decisions and inventory management challenges. Inventory levels remained high, ranging between 50-52 days, further pressuring dealers.
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Two-Wheeler Sales Decline by 6%
The two-wheeler segment also faced a 6 per cent decline with retail sales dropping to 13,53,280 units from 14,44,674 units in February 2024. Dealers pointed to factors such as inventory imbalances, aggressive pricing adjustments, weak consumer sentiment and limited finance availability. Urban areas witnessed a steeper decline compared to rural markets.
Passenger Vehicle Market Share
Maruti Suzuki retained its top position with 1,18,149 units, holding a 38.94 per cent market share. Mahindra & Mahindra climbed up to second place with 39,889 units, a 13.15 per cent market share and Tata Motors secured third place with 38,696 units, holding 12.75 per cent of market share.
Hyundai Motor India, previously the second-largest passenger vehicle manufacturer in India, slipped to fourth place in February. Hyundai’s retail sales dropped by 20 per cent to 38,156 units from 47,540 units last year, reducing its market share to 12.58 per cent from 14.05 per cent.
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Hero MotoCorp Leads Two-Wheeler Segment
In the two-wheeler market, Hero MotoCorp continued its dominance with 3,85,988 units, securing a 28.52 per cent market share. Honda Motorcycle and Scooter India (HMSI) followed with 3,28,502 units (24.27 per cent market share), while TVS Motor Company held third place with 2,53,499 units (18.73 per cent market share).
Optimism for March despite challenges
Looking forward, the dealers remain cautiously optimistic for March, citing the convergence of festivals such as Holi, Gudi Padwa, and Navratri, along with year-end depreciation benefits. However, concerns persist due to declining stock markets, reduced discretionary spending and weak consumer sentiment.
(With inputs from PTI)
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First Published Date: 07 Mar 2025, 08:45 AM IST
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