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%

Comerio Ercole Deepens International Presence From Milan To Riyadh And São Paulo

Comerio Ercole Deepens International Presence From Milan To Riyadh And São Paulo

Comerio Ercole maintained a busy international exhibition schedule throughout June 2026, following its successful participation at INDEX Geneva in May. The company showcased its latest innovations for the plastics and rubber sectors at PLAST 2026 in Milan. The tour progressed to São Paulo, Brazil, for Expobor & Pneushow 2026, Latin America’s most significant rubber and tyre industry fair. This event served as a platform to reinforce ties with established local clients, engage with potential partners and discuss future collaborations.

The firm also attended Saudi Plastics & Petrochem 2026 in Riyadh, a critical gathering for the Middle Eastern petrochemical market. The exhibition underscored rising regional interest in sophisticated processing technologies, consolidating Comerio Ercole’s footprint in an area investing heavily in industrial expansion.

The company hosted an official delegation from Svilajnac, Serbia, at its Busto Arsizio headquarters to bolster economic and industrial exchanges between the regions. Comerio Ercole presented its expertise in rubber and plastics machinery while fostering dialogue on innovation and future partnerships. The company thanked the Municipality of Busto Arsizio and participating organisations for facilitating the exchange.

The newly launched JET – Joint Embossing Technological Center, a venture with the Italian SIMEC Group, has attracted attention within the technical materials industry. The market outlook for the first half of 2026 remains positive, with sustained investments from tyre and rubber clients complemented by growing opportunities in plastics processing. With numerous global projects underway, Comerio Ercole acknowledged the trust placed in its engineering capabilities by customers and partners, whose collaboration remains central to its growth.

Continental Posts Strong EcoVadis Debut In New Tyre Category

Continental Posts Strong EcoVadis Debut In New Tyre Category

Continental has been awarded a gold medal in the 2026 EcoVadis Sustainability Rating, securing 84 points out of 100. This elevates the automotive supplier into the global top five percent of companies scrutinised by the Paris-based organisation. The evaluation marked a shift, as the company was examined for the first time under the ‘manufacture of rubber tyres and tubes’ classification, having previously been benchmarked under ‘parts and accessories’.

The highest scores came in environmental stewardship and labour practices, with 86 points earned in each. EcoVadis analysts weighed climate action plans, management frameworks and public sustainability disclosures. The firm's certification portfolio, procurement policies and execution of internal processes also contributed to the final rating.

Continental has boosted renewable and recycled input utilisation to 28 percent of tyre production materials as of 2025, with a roadmap calling for 40 percent by decade's end. Current lines incorporate reclaimed polyester from plastic bottles, repurposed steel, silica from agricultural ash and synthetic rubber from circular feedstocks. The group is intensifying supply web oversight through certified sourcing and binding sustainability clauses for primary vendors.

Absolute carbon output from tyre manufacturing has dropped by roughly 180,000 metric tonnes over four years, driven by cleaner energy carriers. In early 2026, Continental permanently ceased coal and heavy fuel oil combustion across its global footprint. Plants now generate process steam via green electricity, biomass, biogas and a mix of LPG and natural gas for grid stability. Since 2007, EcoVadis has expanded to over 150,000 rated entities, offering a digital platform for buyers and suppliers to compare supply-chain sustainability performance.

Jorge Almeida, Head of Sustainability for Continental’s Tires group sector, said, “Even in our new industry category, with its different assessment criteria, we continue to rank among the top 5 percent of companies worldwide. Our particularly strong score in the environment theme highlights the measures and management approaches we have implemented to achieve our sustainability targets – from using renewable and recycled materials to further reducing emissions at our plants.”

ANRPC To Host Sustainable Natural Rubber Forum In Kochi On 19 August

ANRPC To Host Sustainable Natural Rubber Forum In Kochi On 19 August

The Association of Natural Rubber Producing Countries (ANRPC) is convening a major sustainability forum in Kochi, India, on 19 August 2026. The day-long event, running from 9:00 AM to 4:30 PM IST at the Crowne Plaza, represents a critical milestone for the natural rubber sector. Building upon the foundational discussions from the 2025 ANRPC meetings and the recent COP30 conference, the forum will unite member governments, industry leaders, non-governmental organisations and compliance bodies to advance a unified sustainability agenda.

The core objective of the gathering is to secure endorsement for the ANRPC’s Sustainable Natural Rubber Guidelines. A primary focus will be on deploying open-source traceability tools designed to facilitate compliance with the European Union Deforestation Regulation while ensuring that these measures do not impose additional financial burdens on smallholders and small-to-medium enterprises. The thematic discussions will be structured around environmental responsibility, including net-zero strategies, economic sustainability to protect smallholder livelihoods and fair pricing and market adaptation through sustainable finance for emerging sectors like electric vehicles and green construction.

The programme will feature five dedicated sessions covering net-zero pathways, national progress reports from India, Malaysia and Thailand and industry case studies from Indonesia, Cambodia and Vietnam. A key panel discussion will see government representatives and supply chain actors making future commitments. Attendance is targeted at ANRPC member states, supply chain stakeholders, rubber associations, environmental groups and relevant compliance organisations.

Tolins Tyres Subsidiary Acquires Plant And Machinery For Capacity Expansion

Tolins Tyres Subsidiary Acquires Plant And Machinery For Capacity Expansion

Tolins Tyres Ltd has announced that its wholly owned subsidiary, Terra Rubber Pvt Ltd, has entered into a purchase agreement with Cochin Reclaim and Rubbers Pvt Ltd to acquire plant and machinery as part of its capacity expansion and backward integration strategy.

The agreement, executed on 1 July 2026, involves the purchase of identified plant and machinery from Cochin Reclaim, an unrelated third party. According to the company, the acquisition is intended to strengthen Terra Rubber's manufacturing capabilities through increased capacity and greater backward integration.

Under the terms of the agreement, Terra Rubber will acquire the machinery on an "as-is, where-is" basis. The subsidiary is required to remove the equipment from Cochin Reclaim's premises within 60 days at its own expense. Ownership of each item will transfer only after full payment has been made and the machinery has been physically removed.

Tolins Tyres said the transaction is a routine purchase undertaken in the ordinary course of business and will have no impact on the management or control of the listed company. It added that neither Terra Rubber nor Tolins Tyres holds any shareholding in Cochin Reclaim.

The company also confirmed that the transaction is not a related-party transaction, has been negotiated on an arm's length basis, and that Cochin Reclaim has no relationship with the company's promoter group or board of directors.