FADA: Over 2.61 crore vehicles sold in 2024-25 due to better performance in rural areas, an increase of 6%

As a result of the improved performance of the rural markets in the passenger as well as two-wheeler segment, over 2.61 crores of vehicles were retailed in the retail markets of the country in the previous financial year 2024-25. It is 6 percent higher compared to the total 2,45,58,437 vehicles retailed in 2023-24.

The Federation of Automobile Dealers Association (FADA) said on Monday, sales of passenger vehicles, two-wheelers and three-wheelers saw an increase in 2024-25. However, there was a decline in the registration of commercial vehicles and tractors. According to the data of the organization, retail sales of passenger vehicles increased by 5% to 41,53,432 units in the last financial year as compared to 39,60,602 in 2023-24.

Retail sales of two-wheelers grew 8% year-on-year to 1,88,77,812 units in 2024-25. Sales of three-wheelers grew by 5% to 12,20,981 units. However, tractor sales declined by 1% to 8,92,410 units. FADA President CS Vigneshwar said, 2024-25 was indeed resilient for the retail vehicle sector. The main highlight was the strong performance in rural areas.

On the other hand, the European Union has demanded the abolition of tariffs on car imports as part of the pending trade agreement with India. Sources said the Modi government is ready to further simplify its current proposal to finalize the talks.

A few weeks ago, the US had demanded the elimination of import duty on cars including electric vehicles as part of bilateral trade talks with India, increasing pressure on domestic carmakers. Auto industry and government sources said India is ready to reduce the tariff from 100% to 10%. This is when India's auto industry has proposed an immediate reduction in tariff on a limited number of petrol cars from 100% to 70% and then a phased reduction to 30%. In the case of EVs, carmakers want no tariff cut till 2029 and then a phased reduction to 30% on limited imports.