Vehicle retail sales in Jammu and Kashmir witnessed a significant decline in May 2025, primarily due to ongoing geopolitical tensions in sensitive border areas. According to data released by the Federation of Automobile Dealers Associations (FADA), most vehicle categories recorded year-on-year drops.
Commercial vehicle sales saw the steepest fall—down by 30.09% to 711 units, compared to 1,017 units in May 2024. Sales of construction equipment plummeted 48.33%, while passenger vehicle registrations fell 10.83% to 3,863 units, down from 4,332 units a year ago.
Other segments also recorded negative growth:
- Three-wheelers declined by 9.07%
- Tractor sales dropped 15.64%
However, two-wheeler sales stood out, registering positive growth of 10.72%, with 8,509 units sold versus 7,685 units last May.
FADA Jammu Chairperson Sanjay Aggarwal attributed the slump to regional instability, which impacted consumer sentiment, dealership operations, and supply logistics. “Consumers are hesitant to invest, especially in higher-end vehicles, fearing mobility disruptions and safety concerns,” he said.
Dealers cited fewer walk-ins, reduced working hours, and delayed deliveries due to security checks. The commercial vehicle segment suffered further from restricted movement and a decline in tourism-driven transport.
Aggarwal noted that while the long-term outlook remains “cautiously optimistic,” a full recovery depends on restored regional stability. He suggested that hyper-local strategies, including customised financing and digital engagement, may help revive demand.
