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FADA Data Released: The Federation of Automobile Dealers Associations (FADA) has released auto sales data for the month of December. According to the data, rural India emerged as the key growth driver for passenger vehicle sales in 2025. It is expanding beyond urban markets as demand has spread beyond major cities.

During the year, passenger vehicle sales in rural areas grew by 12 per cent, while in urban areas the growth was 8 per cent.

According to the data, total sales of passenger vehicles increased to 4.47 million units in 2025 from 4.1 million units in 2024.

The data also reveals a clear shift in India's mobility mix. Nearly one-third of all passenger vehicles sold during the year run on alternative fuels such as CNG, hybrid and electric vehicles.

The share of CNG-powered vehicles increased from 18 per cent to 21 per cent, while the share of electric vehicles increased from 2.4 per cent to 4 per cent. This reflects the growing acceptance of clean transportation options, said IANS, citing FADA.

However, sales of hybrid vehicles declined slightly to 8.2 per cent from 8.7 per cent last year. Sales of petrol vehicles declined from 52 per cent to 49 per cent in 2024, while diesel vehicle sales remained unchanged at 18 per cent.

The strong trend in rural areas was also seen in December, when passenger vehicle sales increased by 26.64 per cent year-on-year.

Sales in rural areas grew by 32.40 per cent during this period, significantly higher than in urban areas, highlighting the growing mobility demand in non-metropolitan areas.

In December, passenger vehicle sales stood at 3,79,671 units, compared to 2,99,799 units in the same month last year.

Explaining the rise in rural demand, FADA President CS Vigneshwar said good harvest and favourable monsoon supported rural incomes.

He further said that an increase in the minimum support price, rationalisation of GST, revision in income tax slabs and a four times reduction in interest rates by the Reserve Bank of India also boosted rural purchasing sentiment.

Across all vehicle categories, two-wheeler sales grew by 7.24 per cent, passenger vehicle sales grew by 9.70 per cent, commercial vehicle sales grew by 6.71 per cent, and tractor sales grew by 11.52 per cent in 2025.

Vigneshwar noted that while overall retail growth was broad-based, rural demand within passenger vehicles stood out clearly, growing faster than urban markets and signalling a wider spread of personal mobility.

With IANS Inputs