Auto Sales Rise Six Percent
ECONOMY & POLICY

Auto Sales Rise Six Percent

India’s automobile industry registered a six percent growth in overall sales for FY25, with dealers showing cautious optimism for FY26, according to the Federation of Automobile Dealers Associations (FADA). The total vehicle retail sales reached over 29.8 million units, up from 28.1 million units in FY24. Growth was led primarily by the two-wheeler and passenger vehicle segments, driven by increased demand, product launches, and improved rural sentiments.

The passenger vehicle segment grew eight percent, though high inventory levels remain a concern. Two-wheeler sales went up by nine percent boosted by improved financing options and rising rural demand. Commercial vehicle sales, however, remained nearly flat, affected by reduced government infrastructure spending and financing challenges. Electric vehicle adoption showed promise, but growth was slower than expected due to high initial costs and limited charging infrastructure.

FADA cautioned that FY26 could be affected by factors like weather patterns, fuel prices, and election-related volatility. While dealers remain hopeful, they have adopted a more measured approach to inventory and expansion planning. FADA also urged OEMs to manage supply efficiently to avoid overstocking and maintain profitability at the dealer level.

India’s automobile industry registered a six percent growth in overall sales for FY25, with dealers showing cautious optimism for FY26, according to the Federation of Automobile Dealers Associations (FADA). The total vehicle retail sales reached over 29.8 million units, up from 28.1 million units in FY24. Growth was led primarily by the two-wheeler and passenger vehicle segments, driven by increased demand, product launches, and improved rural sentiments. The passenger vehicle segment grew eight percent, though high inventory levels remain a concern. Two-wheeler sales went up by nine percent boosted by improved financing options and rising rural demand. Commercial vehicle sales, however, remained nearly flat, affected by reduced government infrastructure spending and financing challenges. Electric vehicle adoption showed promise, but growth was slower than expected due to high initial costs and limited charging infrastructure. FADA cautioned that FY26 could be affected by factors like weather patterns, fuel prices, and election-related volatility. While dealers remain hopeful, they have adopted a more measured approach to inventory and expansion planning. FADA also urged OEMs to manage supply efficiently to avoid overstocking and maintain profitability at the dealer level.

Next Story
Infrastructure Urban

Implementation Status of Jal Jeevan Mission

Since August 2019 the Government has implemented Jal Jeevan Mission to provide assured potable water through household tap connections in rural India. At the start of the mission only 32.3 million (mn) rural households, representing 16.7 per cent, were reported to have tap water connections. States and union territories have reported that 125.8 mn additional rural households have since been provided with tap connections. As a result, of about 193.6 mn rural households roughly 158.2 mn, or 81.71 per cent, are reported to have tap water supply at home.\n\nThe State, district and village level st..

Next Story
Infrastructure Urban

Jal Jeevan Mission Reaches Eighty One Per Cent Rural Coverage

The Government reported substantial progress under the Jal Jeevan Mission, launched in August 2019 to provide tap water to every rural household. At launch only 32.3 million (mn) rural households had tap connections and states and Union territories reported provision of 125.8 mn additional households by March 2026. Consequently, out of about 193.6 mn rural households around 158.2 mn, or 81.71 per cent, are reported to have tap water at home. The Finance Minister announced extension of the mission until 2028 in the 2025-26 budget speech. The Swachh Bharat Mission Grameen, launched in October 20..

Next Story
Infrastructure Urban

Empowering Local Governance for Sustainable Rural Water Supply

The Ministry of Jal Shakti has aligned the Jal Jeevan Mission (JJM) with the 73rd Amendment to strengthen village level planning and community ownership of water supply. Gram Panchayats, village water and sanitation committees and Pani Samitis are to plan, implement, manage and maintain piped water systems, with gram sabha processes formalising handover and oversight. Implementation support agencies including non government organisations, community based organisations and self help groups have been empanelled to train local committees and promote women participation. Under JJM, the department ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement