JKB Financial Services Ltd.

As on : 06-Mar-2025

Economy - Reports
06-Mar-2025 13:22

India's auto retails face downturn in February

The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for February'25.

According to FADA report, February witnessed a broad-based downturn across all categories as the auto market closed with a -7% Y-o-Y decline.

In the 2W segment, despite an 8.57% FY YTD growth, retail sales dipped by 6.33% Y-o-Y. Urban areas experienced a sharper decline of 7.38% compared to a 5.5% drop in rural markets.

The PV segment, despite a modest 4% YTD growth, saw retail sales fall sharply by -10.34% Y-o-Y.

Finally, the CV segment, which saw a modest YTD decline of -0.5%, retail sales dropped by -8.6% Y-o-Y.

During the month, dealers began expressing concerns about inventory being pushed to them without their consent. While such initiatives may serve broader business objectives, it is critical to align wholesale allocations with genuine demand to protect dealer viability and ensure healthy inventory management.

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