India's automobile retail sales grew by 6% in FY25, reaching 2.61 crore units, according to the Federation of Automobile Dealers Associations (FADA). Growth was primarily driven by stronger demand in rural areas, especially in the passenger vehicle and two-wheeler segments.
While passenger vehicles, two-wheelers, and three-wheelers saw positive momentum, commercial vehicles and tractors recorded a decline in registrations compared to FY24. FADA noted a cautiously optimistic outlook for FY26.