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 Transport

Bhopal Metro To Launch Orange Line With Noise Control

The Bhopal Metro is gearing up to launch its priority corridor next month, marking a major milestone for the city’s urban transport network. The Orange Line stretch from AIIMS to Subhash Nagar Depot, covering eight stations, will allow trains to run at speeds of up to 80 km/h while incorporating extensive noise and vibration control technologies, in line with the Metro Rail Transit System Guidelines for Noise and Vibrations (2015), according to the Times of India.Officials from the Madhya Pradesh Metro Rail Corporation Limited (MPMRCL) said the project places strong emphasis on minimising en..

Next Story
Infrastructure Transport

Gandhinagar Metro Completes Trial Run To Mahatma Mandir

The Gandhinagar Metro successfully conducted its trial run on the extended route from the Secretariat to Mahatma Mandir on Thursday, coinciding with the celebration of Dussehra. The trial covered five new stations — Akshardham, Old Secretariat, Sector-16, Sector-24, and Mahatma Mandir, the terminal stop. Previously, metro services in Gandhinagar were operational only up to the Secretariat station. With this extension, the project has taken a significant step towards full-scale operations across Gandhinagar. Officials confirmed that a proposal will now be submitted to the Commissioner of Me..

Next Story
Infrastructure Transport

Namma Metro Gets Fifth Trainset For Yellow Line

Namma Metro has received all six coaches of its fifth trainset for the Yellow Line, raising expectations that train frequency on the newly opened corridor will improve to around 15 minutes in October.According to an official from the Bangalore Metro Rail Corporation Limited (BMRCL), three coaches arrived at the Hebbagodi depot late on Sunday night, followed by the remaining three around Monday midnight. Coaches 1, 2, and 5 were delivered first, followed by 3, 4, and 6.The train coaches were manufactured by Titagarh Rail Systems Limited (TRSL) in West Bengal and dispatched on trailers in the ea..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?