FADA Commercial Vehicle Retail Sale Reports 8.22% YoY Sales Growth In January 2025

FADA issued its commercial vehicle retail sales report for January 2025, showing a sales growth of 10.05% and 24.87% in the LCV and MCV categories, respectively.

Key Highlights

• From 30,220 units sold in January 2024 to 30,061 units in January 2025, retail sales of HCV fell by 0.53% YoY.
• LCV sales increased by 10.05% YoY with sales of 56,410 units in January 2025 compared to 51,260 units in January 2024.
• The retail sales of the MCV category increased by 24.87% YoY from 5,586 units in January 2024 to 6,975 units sold in January 2025.

The Federation of Automobile Dealers Associations (FADA) released the January 2025 monthly retail sales data for Indian commercial vehicles (CVs). Among other sales data, this report contains the sales data for heavy commercial vehicles (HCVs), medium commercial vehicles (MCVs), and light commercial vehicles (LCVs). 

India's retail sales of commercial vehicles increased 8.22% year over year (YoY) in January 2025, reaching 99,425 units from 91,877 units sold in the same month the previous year. All CV categories witnessed an increase in retail sales during this period, except for HCVs. When monthly sales were compared, CV retail sales increased by 38.04% month over month.

Related Link: FADA Commercial Vehicle Retail Sales Registers 5.24% YoY Sales Drop In December 2024

Indian Commercial Vehicle Retail Sales In January 2025

Retail sales of heavy commercial vehicles decreased by 0.53% in January 2025, from 30,061 units sold in January 2024 to 30,220 units sold in January 2025. Sales of light commercial vehicles rose from 56,410 units in January 2025 to 51,260 units in January 2024, representing a 10.05% YoY rise.

From 6,975 units sold in January 2025 to 5,586 units sold in January 2024, the MCV category's retail sales grew by 24.87% YoY. From 5,979 units in January 2025 to 4,811 units in January 2024, the retail sales in the other CV category – which includes commercial vehicles for construction equipment – rose by 24.28% YoY.

Rural-Urban Divide: CV Retail Sales In January 2025

The percentage of retail CV sales in urban and rural areas was thoroughly examined by FADA. Rural and urban RTOs made comparable contributions to the Indian CV sector during the last month. In January 2025, urban areas accounted for 51.2% of truck retail sales, while rural areas accounted for 48.8%.

Official Comments From FADA 

On behalf of FADA, C.S. Vigneshwar, FADA President, shared his perspective on the monthly retail sales performance for January 2025, “Commercial Vehicle sales increased by 8.22% YoY and surged 38.04% MoM, with urban markets climbing from 50.1% to 51.2% share and outpacing rural growth (9.51% vs 6.89%).

He further added, “While higher freight rates and passenger carrier demand provided a boost, many dealers cited low cash flow, strict financing policies and sluggish industries (like cement and coal) as major hurdles. Sentiments in rural regions remained notably subdued, compounded by limited new products. Overall, the sector shows cautious optimism but faces persistent headwinds.”

Commercial Vehicle Segment Highlights

As per the FADA sales report for January 2025, the monthly sales growth contributors for the Indian commercial vehicle segment were higher freight rates and buoyant passenger carrier demand. The segment observed some obstacles like sluggish activity in cement, coal, and infrastructure sectors, strict financing policies, and weak rural sentiment.

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