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Federation of Automobile Dealers Associations (FADA) in its latest data has said that automobile retail sales across categories, including passenger vehicles and two-wheelers, witnessed a drop of 7 per cent in February 2025 amid declining demand. Overall retail sales in the domestic market stood at 18,99,196 units in February 2025, registering a dip of 7 per cent compared to 20,46,328 units in the year-ago period.  

According to the data, passenger vehicle retail sales declined 10 per cent year-on-year to 3,03,398 units in February 2025. Two-wheeler sales witnessed a drop of 6 per cent year-on-year in February 2025 at 13,53,280 units as compared to 14,44,674 units sold in February last year. Commercial vehicle retail sales dropped 9 per cent year-on-year to 82,763 units in February 2025. Tractor sales declined 14.5 per cent year-on-year to 65,574 units in February 2025.

On near term sales outlook, FADA stated that dealers remain cautiously optimistic for March. However, challenges remain, as five consecutive months of declining stock markets have dampened consumer confidence, with investors closing more SIPs rather than opening new ones and reduced discretionary spending driven by dented profitability. Despite this, the convergence of multiple festivals -- ranging from Holi and Gudi Padwa to the onset of Navratri -- and year-end depreciation benefits are expected to provide a much-needed boost to vehicle purchases.