Commercial Vehicle Retail Sales Decline by 8.6% in February 2025: FADA Report

The Federation of Automobile Dealers Associations (FADA) has released the retail vehicle sales data for February 2025, revealing a broad-based downturn across all vehicle categories. The commercial vehicle (CV) segment recorded an 8.6% year-on-year (YoY) decline, with retail sales dropping from 90,551 units in February 2024 to 82,763 units in February 2025.

Breaking Down the Decline

Despite a relatively stable year-to-date (YTD) performance with a marginal 0.5% dip, the CV segment faced a significant setback in February. According to dealers, this decline can be attributed to a challenging commercial environment, including weak sales in the transportation sector, stricter financing norms, and pricing pressures that have affected bulk orders and institutional contracts.

Among different CV categories:

• Light Commercial Vehicles (LCVs) saw a 7.35% YoY drop, with sales reducing from 49,370 units to 45,742 units.
• Medium Commercial Vehicles (MCVs) declined by 5.32%, moving from 6,561 units in February 2024 to 6,212 units this year.
• Heavy Commercial Vehicles (HCVs) faced an 11.49% fall, down from 29,483 units to 26,094 units.
• Other CVs, including construction equipment vehicles, also registered an 8.21% decline, from 5,137 units to 4,715 units.

Dealer Concerns and Market Challenges

FADA President C S Vigneshwar highlighted that dealers have raised concerns regarding inventory management, as many reported receiving stock beyond demand. "Aligning wholesale supply with real retail demand is crucial to ensure a healthy business environment for dealers" he stated.

Additionally, liquidity constraints and high-interest rates have impacted financing options for fleet operators, slowing down purchases. However, government-backed projects have kept the demand for tippers relatively stable, offering some respite to the otherwise sluggish market.

Looking Ahead: Cautious Optimism for March

Despite the decline in February, dealers remain hopeful for a recovery in March. Increased government spending, upcoming festivals, and fiscal year-end incentives could provide a much-needed boost to commercial vehicle sales. Nearly 45% of dealers anticipate growth in March, while 40% expect flat sales, and only 14% foresee further decline.

With ongoing efforts to stabilize demand and government initiatives supporting infrastructure development, the CV segment may witness a rebound in the coming months. For businesses and fleet operators looking for the best deals on commercial vehicles, 91trucks remains the go-to platform for informed purchasing decisions and expert insights into the market trends.

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