Vehicle Registration in April Recorded Around 3% Growth: FADA The increase in registration was due to a modest rise in sales in the passenger vehicle and two-wheeler segments. The commercial vehicle registrations, however, reported a decline.

As many as 2.29 million vehicles were registered in April in India, recording a 3 percent year-on-year growth. The vehicles registered in the same period last year were 2.22 million, according to data collated by industry body FADA and the road ministry's VAHAN portal.

As per the data, the increase in registration was due to a modest rise in sales in the passenger vehicle and two-wheeler segments. The commercial vehicle registrations, however, recorded a decline from the previous month's 94,764 units to April's 90,558 units.

The passenger vehicle sales showed Y-o-Y growth of 1.55 per cent, while two-wheeler sales increased by 2.3 per cent. In March 2025, the two-wheelers recorded a sale of 1.51 million units, whereas in April, the sale grew to 1.69 million. According to industry experts, the two-wheeler industry's overall volume in FY2025- 26 is likely to overtake the previous high of 21-24 million units in FY2019 before the COVID-19 pandemic hit.

"For FY2025- 26, lower interest rates on loans translate into reduced EMI for consumers and will enhance the affordability of two-wheelers. The savings from income tax rebates will also positively affect consumer sentiments. Overall growth momentum in the domestic market, we are expecting, is likely to be positive like last year," KN Radhakrishnan, director and chief executive officer, TVS Motor, had said during the earnings call.

The positive outlook was also seen in the retail sales of three-wheelers and tractors. While three-wheelers' retail sales recorded a growth of 25.5 per cent, tractors reported 7.6 per cent growth. In contrast, retail sales of commercial vehicles saw a dip of 1.05 per cent, falling to 90,558 units from 91,516 units in April 2024.

In the coming months as well, commercial vehicles are likely to trade flat, weighed down by a high-base effect, slower e-commerce activity, and intensifying competition from electric three-wheelers.

"April's commercial vehicles segment faced a 1.05 per cent Y-o-Y decline and a 4.44 per cent M-o-M contraction following OEM-led price increases against stagnant freight rates and fleet utilisation. Dealer feedback highlights that advance purchases in March resulted in elevated carryover stocks, while holiday calendars dampened fresh enquiries and delayed conversions, particularly in the SCV cargo category, where price and product gaps have weighed heavily. Conversely, the bus segment exhibited resilience, underpinned by strong school-transport and staff-mobility demand. Although financing availability remains broadly stable, enhanced support for first-time users will be critical to reignite momentum," said C S Vigneshwar, president, FADA.

Overall, the auto Industry will need to balance demand amid event-driven tailwinds against customer-level liquidity constraints and seasonal softness to sustain momentum in the coming months.

"May's agricultural cycle is concluding on a strong note, underpinned by healthy crop prices and robust mandi procurement. The IMD's forecast of an above-normal southwest monsoon bodes well for rural incomes, farm-sector growth, and downstream demand, while a well-distributed rainy season is critical to containing food inflation. At the same time, Kantar's Rural Barometer and GroupM data signal heightened consumer selectivity in rural India— household spending has outpaced income growth, and inflationary pressures are tempering discretionary purchases. Meanwhile, the Reserve Bank's recent bond purchases are set to inject surplus liquidity into the banking system, paving the way for lower lending rates and enhanced auto-loan affordability," said Vigneshwar.