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

February 2025 auto retail sales drop 7% YoY, with all segments declining; cautious optimism for March.

Auto retail sales in February 2025 fell 7% Year over Year (YoY) with all segments registering negative growth on YoY basis, as per data released by Federation of Automobile Dealers Association (FADA) on Thursday (March 6, 2025.)

The two-wheelers (2W), three-wheelers (3W),  passenger vehicles (PV), tractors and commercial vehicles (CV) segments fell by 6%, 2%, 10%, 14.5% and 8.6% respectively.

The 2W segment, despite an 8.57% Year To Date (YTD) growth, reported YoY retail sales drop of 6.33% in February 2025. 

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

“Key challenges included inventory imbalances, aggressive pricing, weak consumer sentiment and limited finance availability,” it added.

The 4% YTD growth in the PV segment was overshadowed by a steep -10.34% YoY fall in February. “Entry-level demand remained particularly soft, with dealers citing delayed conversions and challenging targets,” FADA said.

Inventory levels stood at 50-52 days, underscoring the importance of aligning wholesale targets with actual retail potential. The CV segment with a YTD decline of -0.5% saw an -8.6% YoY drop in February retail sales.