Two-Wheeler Demand Surges In Rural India, Offsetting Sluggish Car Sales In April

FADA

The Federation of Automobile Dealers Associations (FADA) today released its April 2025 vehicle retail data, revealing a moderate overall growth of 3 percent YoY.

The two-wheeler segment emerged as the primary growth driver, registering a 2.25 percent increase in retail sales compared to April 2024 and a significant 11.84 percent MoM growth. FADA attributes this positive momentum to strong rural demand. However, the sector continues to face headwinds in the form of high financing costs and the pricing impact of OBD-2B emission norms.

The tractor segment demonstrated robust growth, with a 7.5 percent increase in retail sales year-on-year. This strong performance likely reflects the positive sentiment stemming from a strong Rabi harvest, which typically boosts agricultural activity and consequently, tractor demand.

In contrast to the strong performance of two-wheelers and tractors, the passenger vehicle segment experienced a modest 1.55 percent YoY growth, while witnessing a slight dip of 0.19 percent on MoM basis. The auto retail body attributes that deep discounts are prevalent in the market and while the demand for SUVs remains strong, the entry-level segment continues to exhibit sluggishness. FADA also noted that the PV inventory levels are currently around 50 days, significantly higher than their advocated norm of 21 days.

The commercial vehicle segment faced a contraction, with retail sales declining by 1.05 percent YoY and 4.44 percent on MoM basis. FADA suggests that recent price hikes by OEMs and flat freight rates are negatively impacting sales. Within the CV segment, the Small Commercial Vehicle category saw weak demand, while the bus segment remains steady.

Looking ahead to May 2025, FADA anticipates a positive outlook, primarily driven by the strong conclusion of the Rabi harvest. The expectation of a normal monsoon further strengthens this positive sentiment, suggesting continued momentum in rural demand which could positively influence vehicle sales across various segments.

In a significant development, FADA has begun releasing fuel-wise vehicle retail market share data across all key categories. This new initiative aims to provide stakeholders with a granular understanding of evolving energy preferences and the impact of regulatory influences on India's automotive ecosystem.

C S Vigneshwar, President, FADA, said, The new financial year began on a measured note as overall retails in April managed to grow by 3 percent YoY. All categories except CV closed in the green, with 2W, 3W, PV and Trac up 2.25 percent, 24.5 percent, 1.5 percent and 7.5 percent respectively, while CVs declined by 1 percent. With the tariff war paused, stock markets staged a sharp pullback – alleviating investor concerns – and customers thus leveraged Chaitra Navratri, Akshay Tritiya, Bengali New Year, Baisakhi and Vishu to complete purchases, helping April end on a positive note.”

Category Apr '25 Apr '24 Change (in units) Change (in %) Mar '25 Change (in %)
YoY YoY MoM
Two-wheeler 1,686,774 1,649,591 37,183 2.25% 1,508,232 11.84%
Three-wheeler 99,766 80,127 19,639 24.51% 99,376 0.39%
E-Rickshaw (P) 39,528 31,811 7,717 24.26% 36,097 9.50%
E-Rickshaw with Cart (G) 7,463 4,215 3,248 77.06% 7,222 3.34%
Three-wheeler (Goods) 10,312 9,080 1,232 13.57% 11,001 -6.26%
Three-wheeler (Passenger) 42,321 34,959 7,362 21.06% 44,971 -5.89%
Three-wheeler (Personal) 142 62 80 129.03% 85 67.06%
Passenger Vehicle 349,939 344,594 5,345 1.55% 350,603 -0.19%
Tractor 60,915 56,635 4,280 7.56% 74,013 -17.70%
Commercial Vehicle 90,558 91,516 -958 -1.05% 94,764 -4.44%
LCV 46,751 47,267 -516 -1.09% 52,380 -10.75%
MCV 7,638 6,776 862 12.72% 7,200 6.08%
HCV 31,657 32,590 -933 -2.86% 29,436 7.55%
Others 4,512 4,883 -371 -7.60% 5,748 -21.50%
Total 2,287,952 2,222,463 65,489 2.95% 2,126,988 7.57%

Updated AZuR Green Paper Positions Tyre Circular Economy As Key To Clean Industrial Deal

Updated AZuR Green Paper Positions Tyre Circular Economy As Key To Clean Industrial Deal

The Alliance for the Future of Tyres (AZuR) has released a revised Green Paper examining tyre circularity across Europe. This document explores the benefits of extending tyre life through retreading, repair and reprofiling, alongside mechanical and chemical recycling. It illustrates how circular economy principles can advance climate goals, preserve resources and strengthen industrial competitiveness.

The paper presents targeted appeals to political leaders, stressing the urgency of adapting legal structures to unlock current potential. It echoes the European Court of Auditors regarding robust recycling markets, which depend on consistent enforcement and dependable funding. Christina Guth, coordinator of the AZuR network, frames the tyre circular economy as a demonstration of sustainable practice, where environmental protection and economic activity reinforce one another.

The paper acknowledges the Clean Industrial Deal as constructive, yet argues circularity must occupy a more central position. Products must be conceived from the beginning with reuse and recycling in mind if materials are to remain in circulation. This gains urgency as the mobility sector expands, bringing increased tyre waste. A functioning circular system for tyres presents an avenue for reconciling ecological pressures with economic development.

The initiative coordinated by AZuR unites more than 80 organisations spanning industry, small business and research. In Germany, over half of the more than half a million tonnes of annual tyre waste is cycled back into use, with collected materials evaluated by certified operators.

Despite existing capabilities, the paper asserts political engagement remains insufficient. It enumerates requests for governing bodies, including support for repair enterprises, binding sustainability benchmarks and inclusion of retreaded options in public procurement. Another element involves cultivating a European market for premium recycled substances.

The paper also advocates for clear regulations regarding novel recycling methods and for recycled content to be granted equivalent status to virgin materials. Such measures are presented as essential for protecting investment in sustainable innovation.

Broader European trends indicate circular systems are increasingly viewed as integral to a resilient industrial approach. Advanced recovery infrastructure aids climate objectives and underpins material security. The European Court of Auditors has called for reinforced policy conditions that enable recycling economies to thrive, highlighting consistent rule application and stable financing for recovered materials.

Hankook Conquers Safari Rally Kenya’s Relentless Terrain

Hankook Tire, the official tyre supplier to the FIA World Rally Championship (WRC), concluded its participation in the 2026 Safari Rally Kenya, which took place in Naivasha, Kenya, with the event wrapping up on 15 March 2026. The challenging terrain of the Kenyan savanna provided a rigorous test for Hankook’s specialised equipment. Throughout the rally, the company provided its Dynapro R213 tyre, engineered specifically for severe off-road conditions. This extreme all-terrain tyre was available in Hard and Soft compounds and featured a robust casing structure alongside an optimised tread design. These characteristics ensured reliable grip and accurate steering response despite the demands of high-speed rallying.

A key development was the introduction of an upgraded soft gravel tyre at this event. It delivered superior traction on wet and slippery sections while retaining its structural integrity amidst the unpredictable conditions. The rally unfolded across the rugged landscapes of Naivasha and the Great Rift Valley, where competitors faced sharp rocks, deep sand and treacherous fesh-fesh dust. Fluctuating weather further compounded the difficulty, making consistent tyre performance critical for drivers to reach the finish line. Ultimately, Toyota Gazoo Racing's Takamoto Katsuta emerged victorious after four gruelling days, reinforcing the event's reputation as one of the season's most demanding.

Looking ahead, the championship moves to Europe for its fourth round, the WRC Croatia Rally 2026, scheduled from 9 to 12 April 2026 along the Adriatic coast. Returning to the WRC calendar after being part of the European Championship in 2025, the rally has generated significant interest with its redesigned route that navigates both coastal and mountainous terrain. For this event, Hankook will supply its Ventus Z215 and Z210 tyres, high-performance tarmac compounds designed to meet the rigorous demands of the course. These tyres have previously proven their effectiveness in similar environments, such as during the 2025 Rally Islas Canarias, where coastal and mountainous stages demanded exceptional vehicle control and tyre resilience.

Since taking over as the exclusive tyre supplier for all WRC classes in 2025, Hankook has leveraged data from its involvement in over 70 global motorsport championships. The company applies these race-proven insights to advance its ultra-high-performance tyre technology, continually reinforcing its leadership in the field.

Flexsys Announces Price Hike For Insoluble Sulphur Products

Flexsys Announces Price Hike For Insoluble Sulphur Products

Flexsys, a global speciality chemicals and materials technology company, has announced an increase in regional prices for Insoluble Sulphur products with effect from 23 March 2026.

The price increase schedule is as follows:

  • Asia: USD 0.60 per kg
  • Europe: EUR 0.45 per kg
  • North America: USD 0.40 per kg
  • Latin America: USD 0.40 per kg

The driving forces behind these significant pricing actions are multifaceted, rooted in substantial disruptions to global supply chains. These disruptions are largely attributed to the ongoing conflict in the Middle East, which has had a cascading effect on logistics. Compounding this issue are the sharply rising costs associated with transportation and essential raw materials.

Yokohama ADVAN Tyres To Power BMW M3 Touring 24H Car At Nürburgring Endurance Races

Yokohama ADVAN Tyres To Power BMW M3 Touring 24H Car At Nürburgring Endurance Races

Yokohama Rubber has announced that it will supply ADVAN racing tyres for a newly developed BMW M Motorsport entry set to compete in this year’s Nürburgring 24-Hour Race and the Nürburgring Langstrecken-Serie (NLS). As an official partner of BMW M Motorsport, the company is supporting the BMW M3 Touring 24H, a vehicle designed specifically for the Nürburgring circuit and built with fans in mind.

This special model shares its technical foundation with the BMW M4 GT3 EVO but is constructed using the body shell of the BMW M3 Touring. It measures 200 millimetres longer and stands 32 millimetres taller than its GT3 counterpart, including the rear wing. Despite these dimensional differences, the mechanical specifications of both vehicles remain identical. The car will compete in the SPX class, a category dedicated to high-performance experimental vehicles and concept cars with unique modifications that do not conform to other classifications. This class plays a key role in testing and refining new automotive technologies.

Yokohama’s renewed involvement with BMW M Motorsport at the Nürburgring marks a significant return, as the two last collaborated at this event between 1980 and 1990, a period during which they secured two overall victories. This season represents their first partnership at the track in nearly four decades. In addition to supplying tyres for the BMW M3 Touring 24H, Yokohama will also equip the BMW M4 GT3 EVO, which is entered in the SP9 class for GT3-spec production vehicles.

Beyond its work with BMW, Yokohama Rubber will provide tyres to several leading teams participating in both the Nürburgring endurance series and the iconic 24-hour race, further extending its presence in one of the world’s most demanding motorsport events.