The outlook for rural demand appears mixed, shaped by divergent trends across key vehicle segments by the end of the observed period. Two-wheeler sales displayed strong year-on-year growth early on, peaking at 30.8% in April 2024 and maintaining robust momentum through September. However, the trend turned volatile with contractions in November and December 2024, followed by a brief recovery in January 2025. A notable rebound in March (11.4%) was offset by a sharp -16.7% drop in April 2025, signalling weakening demand or possible base effects. Three-wheeler sales, by contrast, showed more stable but moderate growth, with consistent positive figures through most of the period. Minor contractions in late 2024 and again in April 2025 (-0.7%) suggest some softness but without the severe volatility seen in two-wheelers.
Tractor sales, a key indicator of rural investment and agricultural sentiment, showed a markedly improving trajectory. After a subdued start with negative or flat growth in early 2024, tractor sales gained significant strength from October onwards, with growth surging to 35.9% in February and 25.4% in March 2025. Even with a moderated 7.7% growth in April, this segment reflects positive rural investment trends. Taken together, while the tractor segment suggests strengthening agricultural demand, the recent dips in two- and three-wheeler sales highlight potential caution in broader rural consumption. These mixed signals underscore the uncertainty in rural economic dynamics, despite a generally resilient macroeconomic environment and strong domestic consumption elsewhere in the economy entering FY26.