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%

Steelastic Forges Strategic Partnership With IBP For India, Sri Lanka, and Bangladesh

Steelastic Forges Strategic Partnership With IBP For India, Sri Lanka, and Bangladesh

Steelastic LLC, part of the HEICO Companies, has officially announced a new strategic partnership with IBP for the territories of India, Sri Lanka and Bangladesh. In this capacity, the company has welcomed John Powath as its official agent for these regions. Powath is a respected leader within the tyre industry, bringing a wealth of experience from his roles as a Partner at IBP and as a Co-Founder of Automoto. He is also recognised as an active contributor to global tyre and automotive industry events.

Operationally, Steelastic’s Business Development Manager Hemant Agrawal will work in close coordination with the IBP team. Their collective focus will be on strengthening the support infrastructure for customers and driving the growth of Steelastic’s business footprint across South Asia. The company has expressed considerable optimism regarding this collaboration and believes it will unlock substantial new opportunities for its valued customer base in the region, enhancing product access and technical service.

The company statement read: “We welcome John Powath as Steelastic’s official agent in these regions. Powath is a respected leader in the tyre industry, Partner at IBP, & Co-Founder at Automoto, as well as an active contributor to global tyre and automotive events. Moving forward, Steelastic Business Development Manager, Hemant Agrawal, along with the IBP team, will work closely to strengthen customer support and grow Steelastic’s business across South Asia. We are excited about this collaboration and the opportunities it will bring for our valued customers.”

Bridgestone Potenza Sport Dominates EVO’s 2025 Tyre Test

Bridgestone Potenza Sport Dominates EVO’s 2025 Tyre Test

The Bridgestone Potenza Sport has been declared the definitive winner in EVO's 2025 Tyre Test, decisively outperforming eight rival products. Evaluated on a high-powered BMW 135i xDrive with 302 bhp in the size 235/35 R19, the tyre delivered six class-leading results.

The tyre’s dominance was particularly evident in wet conditions, where it achieved the shortest braking distance and top scores for cornering and aquaplaning resistance. The tyre also excelled in dry performance, recording the fastest lap time and a strong third-place finish in dry braking. Test editors praised it as an exceptional and emphatic winner, noting its superb on-road feel and capability in all conditions.

This assessment is further supported by independent TÜV SÜD testing, which confirms the Potenza Sport's superior dry braking, cornering and stability against other premium tyres. Its wet performance is also officially recognised with a top EU 'A' wet grip rating and leading results in wet cornering and handling, solidifying its status as a top-tier ultra-high-performance tyre.

Michelin Fully Deploys TreadEye Technology Across US Retread Network

Michelin TreadEye

Michelin has announced the full deployment of its proprietary TreadEye technology across the Michelin Retread Technologies franchise network in the United States. TreadEye is a technology developed to enhance the retread process and deliver value to fleets.

The company stated that TreadEye is a tread depth assessment tool that helps fleets maximise their tyre investment. The system collects 1,200 measurement points accurately and consistently, providing insights into tread wear and casing condition.

Key benefits of the TreadEye technology include:

  • Identification of pull points by fleet location.
  • Maximisation of rubber on the road by helping to avoid early pulls.
  • Helps in prevention of casing damage and helps reduce DOT violations.
  • Helps reduce downtime from late pulls.
  • Improved efficiency in the tyre removal process, directly affecting a fleet’s bottom line.

Nate Kirian, Vice-President of Sales and Distribution, Commercial Business Lines for Michelin North America, Inc, said, “TreadEye is a game-changer for our retread operations and for the fleets we serve. It’s a powerful example of how Michelin continues to innovate in ways that directly benefit our customers.”

TyreSafe And NTDA Unite For Road Safety

TyreSafe And NTDA Unite For Road Safety

In a significant move for UK road safety, TyreSafe, the nation's dedicated tyre safety charity, has formed a landmark partnership with the National Tyre Distributors Association (NTDA). This alliance represents a powerful consolidation of industry voices, uniting manufacturers, distributors and safety advocates behind the common goals of enhancing road safety, elevating professional standards and promoting positive behavioural change among motorists.

This formal collaboration brings together two central organisations within the automotive aftercare sector. By combining their strategic objectives, they aim to amplify crucial safety messages and deepen engagement with the frontline professionals – retailers, fitters and technicians – who directly influence driver habits. The NTDA, a leading trade association founded in 1930, represents over 300 companies operating more than 2,000 retail outlets across the country, from major national chains to independent family-run businesses.

The partnership will facilitate joint public campaigns, shared research projects and the development of educational resources designed to help both consumers and industry professionals better understand the critical importance of correct tyre maintenance and timely replacement. This collaborative effort is bolstered by compelling new data from the NTDA's recent TyreCheck 2025 study, which examined over 58,000 vehicles. The research revealed a concerning increase in the number of tyres nearing the legal minimum tread depth, underscoring an urgent need for renewed public education on what constitutes a truly roadworthy and safe tyre. Ultimately, this unified initiative marks a new era of cooperation, driven by a shared vision to eliminate the dangers posed by illegal and defective tyres on Britain's roads.

Stuart Lovatt, TyreSafe Chair, said, “This partnership represents a pivotal moment for the tyre industry. TyreSafe and the NTDA share a common goal – to make tyre safety a central part of the national road safety conversation. By combining TyreSafe’s public awareness and behavioural insight with the NTDA’s trade expertise and nationwide reach, we are uniting every part of the tyre supply chain behind one clear message – safe tyres save lives. Together, we can make that message stronger, more consistent and more effective than ever before.”

Ian Andrew, CEO, NTDA, said, “The NTDA has long been committed to raising standards across the tyre trade and promoting the professionalism of our members. Working collaboratively with TyreSafe allows us to take this commitment to the next level – ensuring that retailers, fitters and technicians play a central role in improving driver understanding and road safety outcomes. This partnership will help unify our industry around shared goals, driving both cultural and practical change.”