FADA Survey Predicts Sluggish Auto Sales Through April 2025 and Beyond

Most auto dealers across India brace for an uncertain April dampened by both domestic and global factors.

According to the Federation of Automobile Dealers Association (FADA), IMD’s warning of intense heatwaves looms over consumer footfall and infrastructure activity, while renewed tariff tensions on the international stage add market volatility and rattle automobile buyer sentiment.

FADA said on Monday that nearly 60 percent of dealers across all segments report weak booking pipelines, signalling a fragile foundation for the new financial year 2025-26. “The picture is far from rosy: nearly 60 per cent of dealers across all segments report weak booking pipelines, signalling a fragile foundation on which any optimism must rest,” said a FADA statement.

Two-wheeler dealers, however, anticipate a lift from festive buy-ins and marriage season demand. Passenger vehicle showrooms look to pipeline bookings and localized celebrations, such as Akshay Tritiya, Bengali New Year, Baisakhi, and Vishu, among others.

FADA says dealers across India are cautiously optimistic for 2025-26, projecting mid to high single-digit growth in the two-wheeler segment and low single-digit growth for both passenger vehicle and commercial vehicle segments.

“Significant headwinds dampen overall optimism. Financing remains a persistent challenge–dealers note that credit norms have tightened in recent months, and the need for further rate cuts by the RBI to bring down borrowing costs,” FADA said in its outlook.